Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | ||
Mar. 31, 2014 | 9-May-14 | 9-May-14 | |
Series A 7% Cumulative Convertible Preferred Stock [Member] | Common Stock [Member] | ||
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'NETSOL TECHNOLOGIES INC | ' | ' |
Document Type | '10-Q | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 0 | 9,150,889 |
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 | 31-Mar-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $12,383,695 | $7,874,318 |
Restricted cash | 2,495,354 | 1,875,237 |
Accounts receivable, net | 12,967,350 | 14,684,212 |
Revenues in excess of billings | 4,519,754 | 15,367,198 |
Other current assets | 3,017,570 | 2,273,314 |
Total current assets | 35,383,723 | 42,074,279 |
Investment under equity method | 175,151 | 545,483 |
Property and equipment, net | 27,625,986 | 20,978,369 |
Intangible assets, net | 30,850,059 | 29,452,654 |
Goodwill | 9,653,330 | 9,653,330 |
Total assets | 103,688,249 | 102,704,115 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 5,250,138 | 4,027,147 |
Current portion of loans and obligations under capitalized leases | 5,855,371 | 5,308,626 |
Unearned revenues | 3,607,582 | 2,446,018 |
Common stock to be issued | 342,898 | 88,325 |
Total current liabilities | 15,055,989 | 11,870,116 |
Long term loans and obligations under capitalized leases; less current maturities | 1,837,583 | 1,412,212 |
Total liabilities | 16,893,572 | 13,282,328 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $.01 par value; 15,000,000 shares authorized; 9,124,164 and 8,929,523 issued and outstanding as of March 31, 2014 and June 30, 2013 | 91,242 | 89,295 |
Additional paid-in-capital | 115,786,958 | 114,292,510 |
Treasury stock | -415,425 | -415,425 |
Accumulated deficit | -27,845,083 | -23,821,256 |
Stock subscription receivable | -2,280,488 | -2,280,488 |
Other comprehensive loss | -14,915,572 | -15,714,112 |
Total NetSol stockholders' equity | 70,421,632 | 72,150,524 |
Non-controlling interest | 16,373,045 | 17,271,263 |
Total stockholders' equity | 86,794,677 | 89,421,787 |
Total liabilities and stockholders' equity | $103,688,249 | $102,704,115 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Common stock par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 9,124,164 | 8,929,523 |
Common stock, shares outstanding | 9,124,164 | 8,929,523 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Net Revenues: | ' | ' | ' | ' |
License fees | $2,118,015 | $4,790,015 | $4,826,198 | $11,537,363 |
Maintenance fees | 2,556,017 | 2,488,774 | 7,803,621 | 7,199,293 |
Services | 4,689,019 | 5,327,826 | 14,208,275 | 16,140,819 |
Total net revenues | 9,363,051 | 12,606,615 | 26,838,094 | 34,877,475 |
Cost of revenues: | ' | ' | ' | ' |
Salaries and consultants | 4,106,150 | 2,954,192 | 10,526,701 | 8,156,677 |
Travel | 354,554 | 487,870 | 1,090,809 | 1,191,174 |
Repairs and maintenance | 256,629 | 88,264 | 570,712 | 330,998 |
Depreciation and amortization | 1,471,126 | 912,669 | 3,517,804 | 2,654,289 |
Other | 728,446 | 1,220,075 | 2,109,372 | 2,618,996 |
Research and development cost | 65,060 | 45,770 | 178,862 | 105,692 |
Total cost of revenues | 6,981,965 | 5,708,840 | 17,994,260 | 15,057,826 |
Gross profit | 2,381,086 | 6,897,775 | 8,843,834 | 19,819,649 |
Operating expenses: | ' | ' | ' | ' |
Selling and marketing | 1,083,753 | 728,873 | 3,032,675 | 2,350,275 |
Depreciation and amortization | 493,814 | 437,700 | 1,351,378 | 1,113,136 |
Salaries and wages | 1,414,356 | 1,375,930 | 4,313,831 | 3,722,590 |
General and administrative | 2,070,542 | 1,213,232 | 5,575,498 | 4,069,396 |
Total operating expenses | 5,062,465 | 3,755,735 | 14,273,382 | 11,255,397 |
Income (loss) from operations | -2,681,379 | 3,142,040 | -5,429,548 | 8,564,252 |
Other income and (expenses) | ' | ' | ' | ' |
Gain (loss) on sale of assets | -995 | 15,097 | -190,027 | 29,118 |
Interest expense | -8,275 | -115,556 | -170,230 | -587,877 |
Interest income | 114,141 | 86,018 | 186,926 | 141,802 |
Gain (loss) on foreign currency exchange transactions | -908,192 | 97,831 | 299,270 | 997,725 |
Share of net income (loss) from equity investment | -203,684 | -16,392 | -370,332 | 468,095 |
Amortization of financing costs | ' | -173,266 | ' | -615,394 |
Other income (expense) | -5,006 | 20 | -4,341 | 52 |
Total other income (expenses) | -1,012,011 | -106,248 | -248,734 | 433,521 |
Net income (loss) before income taxes | -3,693,390 | 3,035,792 | -5,678,282 | 8,997,773 |
Income tax benefit (provision) | -98,920 | -10,579 | -139,321 | -22,027 |
Net income (loss) from continuing operations | -3,792,310 | 3,025,213 | -5,817,603 | 8,975,746 |
Income (loss) from discontinued operations net of gain on disposal | 1,480,786 | -493,994 | 1,158,752 | -1,494,640 |
Net income (loss) | -2,311,524 | 2,531,219 | -4,658,851 | 7,481,106 |
Non-controlling interest | 1,011,720 | -968,384 | 635,024 | -2,766,163 |
Net income (loss) attributable to NetSol | -1,299,804 | 1,562,835 | -4,023,827 | 4,714,943 |
Income (loss) from continuing operations | -2,780,590 | 2,056,829 | -5,182,579 | 6,209,583 |
Income (loss) from discontinued operations | 1,480,786 | -493,994 | 1,158,752 | -1,494,640 |
Net income (loss) | ($1,299,804) | $1,562,835 | ($4,023,827) | $4,714,943 |
Net income (loss) per share from continuing operations: | ' | ' | ' | ' |
Basic (in Dollars per share) | ($0.31) | $0.25 | ($0.57) | $0.78 |
Diluted (in Dollars per share) | ($0.31) | $0.24 | ($0.57) | $0.77 |
Net income (loss) per share from discontinued operations: | ' | ' | ' | ' |
Basic (in Dollars per share) | $0.16 | ($0.06) | $0.13 | ($0.19) |
Diluted (in Dollars per share) | $0.16 | ($0.06) | $0.13 | ($0.19) |
Net income (loss) per common share | ' | ' | ' | ' |
Basic (in Dollars per share) | ($0.14) | $0.19 | ($0.45) | $0.59 |
Diluted (in Dollars per share) | ($0.14) | $0.19 | ($0.45) | $0.59 |
Weighted average number of shares outstanding | ' | ' | ' | ' |
Basic (in Shares) | 9,092,834 | 8,344,408 | 9,034,532 | 7,961,843 |
Diluted (in Shares) | 9,092,834 | 8,408,426 | 9,034,532 | 8,025,861 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Net Income (loss) | ($1,299,804) | $1,562,835 | ($4,023,827) | $4,714,943 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Translation adjustment | 5,026,610 | -1,302,180 | 1,183,585 | -3,465,191 |
Comprehensive income (loss) | 3,726,806 | 260,655 | -2,840,242 | 1,249,752 |
Comprehensive income (loss) attributable to non-controlling interest | 1,646,559 | -453,263 | 385,045 | -1,084,915 |
Comprehensive income (loss) attributable to NetSol | $2,080,247 | $713,918 | ($3,225,287) | $2,334,667 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income (loss) | ($4,658,851) | $7,481,106 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 4,869,182 | 4,128,317 |
Provision for bad debts | 247,530 | 54,444 |
Share of net loss (income) from investment under equity method | 370,332 | -468,095 |
(Gain) loss on sale of assets | 190,027 | -29,118 |
(Gain) loss on sale of subsidiary | -1,870,871 | ' |
Stock issued for interest on notes payable | ' | 211,111 |
Stock issued for services | 817,417 | 38,790 |
Fair market value of warrants and stock options granted | 189,937 | 455,926 |
Amortization of financing costs | ' | 615,394 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 2,393,876 | -4,649,531 |
Revenue in excess of billing | 10,568,918 | 98,323 |
Other current assets | 144,372 | -228,434 |
Accounts payable and accrued expenses | 2,064,982 | 2,032,318 |
Net cash provided by operating activities | 15,326,851 | 9,740,551 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -9,583,663 | -6,751,002 |
Sales of property and equipment | 61,080 | 138,385 |
Sale of subsidiary | 1,810,700 | ' |
Purchase of non-controlling interest in subsidiaries | -17,852 | -799,349 |
Increase in intangible assets | -3,158,083 | -3,495,938 |
Net cash used in investing activities | -10,887,818 | -10,907,904 |
Cash flows from financing activities: | ' | ' |
Proceeds from the exercise of stock options and warrants | 709,436 | 2,212,712 |
Payment to common shareholders for fractional shares | ' | -194 |
Proceeds from exercise of subsidiary options | 376,811 | 90,589 |
Restricted cash | -620,117 | -1,925,344 |
Dividend paid by subsidiary to non-controlling interest | -1,008,543 | ' |
Proceeds from bank loans | 1,366,226 | 1,874,079 |
Payments on capital lease obligations and loans - net | -610,822 | -687,125 |
Net cash provided by financing activities | 212,991 | 1,564,717 |
Effect of exchange rate changes | -142,647 | -290,813 |
Net increase in cash and cash equivalents | 4,509,377 | 106,551 |
Cash and cash equivalents, beginning of the period | 7,874,318 | 7,599,607 |
Cash and cash equivalents, end of period | $12,383,695 | $7,706,158 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows Supplemental Disclosures (Unaudited) (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash paid during the period for: | ' | ' |
Interest | $220,928 | $317,483 |
Taxes | 245,397 | 23,700 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Stock issued for the payment of vendors | 210,060 | ' |
Stock issued for the conversion of convertible notes payable | ' | $3,600,000 |
Note_1_Basis_of_Presentation_a
Note 1 - Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Mar. 31, 2014 | |
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 condensed 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) Ltd. (“Omni”) | |
NetSol Technologies (GmbH) (“NTG”) | |
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 condensed consolidated financial statements have been reclassified to conform to report classifications of the current year. | |
Note_2_Accounting_Policies
Note 2 - Accounting Policies | 9 Months Ended |
Mar. 31, 2014 | |
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 standard is not expected to have a material impact on the Company’s consolidated financial statements. | |
In March 2013, the FASB issued Accounting Standards Update No. 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in 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. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. | |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)." ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. The Company is currently evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition. | |
Note_3_Earnings_Per_Share
Note 3 - Earnings Per Share | 9 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
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 notes payable and stock awards. | |||||||||||||||||||||||||
The components of basic and diluted earnings per share were as follows: | |||||||||||||||||||||||||
For the three months ended March 31, 2014 | For the nine months ended March 31, 2014 | ||||||||||||||||||||||||
Net Loss | Shares | Per Share | Net Loss | Shares | Per Share | ||||||||||||||||||||
Basic loss per share: | |||||||||||||||||||||||||
Net loss available to common shareholders | $ | (1,299,804 | ) | 9,092,834 | $ | (0.14 | ) | $ | (4,023,827 | ) | 9,034,532 | $ | (0.45 | ) | |||||||||||
Effect of dilutive securities | |||||||||||||||||||||||||
Stock options | - | - | - | - | - | - | |||||||||||||||||||
Warrants | - | - | - | - | - | - | |||||||||||||||||||
Diluted loss per share | $ | (1,299,804 | ) | 9,092,834 | $ | (0.14 | ) | $ | (4,023,827 | ) | 9,034,532 | $ | (0.45 | ) | |||||||||||
For the three months ended March 31, 2013 | For the nine months ended March 31, 2013 | ||||||||||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | ||||||||||||||||||||
Basic income per share: | |||||||||||||||||||||||||
Net income available to common shareholders | $ | 1,562,835 | 8,344,408 | $ | 0.19 | $ | 4,714,943 | 7,961,843 | $ | 0.59 | |||||||||||||||
Effect of dilutive securities | |||||||||||||||||||||||||
Stock options | - | 36,185 | - | - | 36,185 | - | |||||||||||||||||||
Warrants | - | 27,833 | - | - | 27,833 | - | |||||||||||||||||||
Diluted income per share | $ | 1,562,835 | 8,408,426 | $ | 0.19 | $ | 4,714,943 | 8,025,861 | $ | 0.59 | |||||||||||||||
As of March 31, 2014 and 2013, 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 March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Stock Options | 6,372 | - | |||||||||||||||||||||||
Warrants | 3,571 | - | |||||||||||||||||||||||
Convertible Note | - | 8,114 | |||||||||||||||||||||||
9,943 | 8,114 | ||||||||||||||||||||||||
Note_4_Other_Comprehensive_Inc
Note 4 - Other Comprehensive Income and Foreign Currency | 9 Months Ended |
Mar. 31, 2014 | |
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, NetSol UK, VLSH and VLS use the British Pound; VLSIL and NTG use the Euro; NetSol PK, Connect, Omni 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 $14,915,572, and $15,714,112 as of March 31, 2014 and June 30, 2013, respectively. During the three and nine months ended March 31, 2014, comprehensive loss in the consolidated statements of operations included translation gains of $3,380,051, and $798,540, respectively. During the three and nine months ended March 31, 2013, comprehensive loss in the consolidated statements of operations included translation losses of $848,917 and $2,380,276, respectively. | |
Note_5_Accounts_Receivable
Note 5 - Accounts Receivable | 9 Months Ended |
Mar. 31, 2014 | |
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 as of March 31, 2014 and June 30, 2013. | |
Note_6_Other_Current_Assets
Note 6 - Other Current Assets | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Other Assets Disclosure [Text Block] | ' | ||||||||
NOTE 6 - OTHER CURRENT ASSETS | |||||||||
Other current assets consisted of the following: | |||||||||
As of March 31, | As of June 30, | ||||||||
2014 | 2013 | ||||||||
Prepaid Expenses | $ | 770,812 | $ | 559,217 | |||||
Advance Income Tax | 804,966 | 887,893 | |||||||
Employee Advances | 61,891 | 43,794 | |||||||
Security Deposits | 203,957 | 189,382 | |||||||
Tender Money Receivable | 80,194 | 106,398 | |||||||
Other Receivables | 813,470 | 222,609 | |||||||
Other Assets | 235,412 | 197,915 | |||||||
Due From Related Party (1) | 46,868 | 66,106 | |||||||
Total | $ | 3,017,570 | $ | 2,273,314 | |||||
(1) Due from related party as of March 31, 2014 and June 30, 2013 is a receivable from Atheeb NetSol Saudi Company Limited. | |||||||||
Note_7_Property_and_Equipment
Note 7 - Property and Equipment | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
NOTE 7 - PROPERTY AND EQUIPMENT | |||||||||
Property and equipment, net, consisted of the following: | |||||||||
As of March 31, | As of June 30, | ||||||||
2014 | 2013 | ||||||||
Office furniture and equipment | $ | 2,478,953 | $ | 2,508,975 | |||||
Computer equipment | 24,328,362 | 19,987,480 | |||||||
Assets under capital leases | 2,015,764 | 1,126,860 | |||||||
Building | 6,241,603 | 2,391,550 | |||||||
Land | 2,565,633 | 2,460,144 | |||||||
Capital work in progress | 3,331,291 | 5,104,283 | |||||||
Autos | 977,115 | 689,440 | |||||||
Improvements | 419,175 | 513,044 | |||||||
Subtotal | 42,357,896 | 34,781,776 | |||||||
Accumulated depreciation | (14,731,910 | ) | (13,803,407 | ) | |||||
Property and equipment, net | $ | 27,625,986 | $ | 20,978,369 | |||||
For the three and nine months ended March 31, 2014, depreciation expense totaled $1,325,978, and $3,439,885, respectively. Of these amounts, $858,334, and $2,188,334, respectively, is reflected in cost of revenues. For the three and nine months ended March 31, 2013, depreciation expense totaled $1,015,352 and $2,545,008, respectively. Of these amounts, $619,886 and $1,559,798, 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. Accumulated capitalized interest was $1,325,493, and $904,700 as of March 31, 2014 and June 30, 2013, respectively. | |||||||||
Following is a summary of fixed assets held under capital leases as of March 31, 2014 and June 30, 2013: | |||||||||
As of March 31, | As of June 30, | ||||||||
2014 | 2013 | ||||||||
Computer Equipment and Software | $ | 844,899 | $ | 454,002 | |||||
Furniture and Fixtures | 280,361 | 951 | |||||||
Vehicles | 890,504 | 671,907 | |||||||
Total | 2,015,764 | 1,126,860 | |||||||
Less: Accumulated Depreciation | (489,693 | ) | (350,048 | ) | |||||
Net | $ | 1,526,071 | $ | 776,812 | |||||
Note_8_Intangible_Assets
Note 8 - Intangible Assets | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||||
NOTE 8 - INTANGIBLE ASSETS | |||||||||||||||||
Intangible assets consisted of the following: | |||||||||||||||||
Product Licenses | Customer Lists | Technology | Total | ||||||||||||||
Intangible assets - June 30, 2013 - cost | $ | 44,837,558 | $ | 6,052,378 | $ | 242,702 | $ | 51,132,638 | |||||||||
Additions | 3,158,083 | - | - | 3,158,083 | |||||||||||||
Disposal | (591,216 | ) | - | - | (591,216 | ) | |||||||||||
Effect of translation adjustment | 836,407 | - | - | 836,407 | |||||||||||||
Accumulated amortization | (17,636,284 | ) | (5,928,217 | ) | (121,352 | ) | (23,685,853 | ) | |||||||||
Net balance - March 31, 2014 | $ | 30,604,548 | $ | 124,161 | $ | 121,350 | $ | 30,850,059 | |||||||||
(A) Product Licenses | |||||||||||||||||
Product licenses include internally-developed original license issues, renewals, enhancements, copyrights, trademarks, and trade names. Product licenses are amortized on a straight-line basis over their respective lives, which is currently a weighted average of approximately 8 years. Amortization expense for the three and nine months ended March 31, 2014 was $612,792, and $1,329,470, respectively. Amortization expense for the three and nine months ended March 31, 2013 was $413,137 and $1,455,383, respectively. | |||||||||||||||||
(B) Customer Lists | |||||||||||||||||
Customer lists are being amortized based on a straight-line basis, which approximates the anticipated rate of attrition, which is currently a weighted average of approximately 5 years. Amortization expense for the three and nine months ended March 31, 2014 was $13,235, and $62,115, respectively. Amortization expense for the three and nine months ended March 31, 2013 was $17,442 and $78,224, respectively. | |||||||||||||||||
(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 and nine months ended March 31, 2014 was $12,935, and $37,712, respectively. Amortization expense for the three and nine months ended March 31, 2013 was $24,792 and $49,702, respectively. | |||||||||||||||||
(D) Future Amortization | |||||||||||||||||
Estimated amortization expense of intangible assets over the next five years is as follows: | |||||||||||||||||
Year ended: | |||||||||||||||||
March 31, 2015 | $ | 2,468,920 | |||||||||||||||
March 31, 2016 | 2,341,279 | ||||||||||||||||
March 31, 2017 | 2,080,550 | ||||||||||||||||
March 31, 2018 | 2,017,453 | ||||||||||||||||
March 31, 2019 | 1,957,049 | ||||||||||||||||
Thereafter | 19,984,808 | ||||||||||||||||
$ | 30,850,059 | ||||||||||||||||
Note_9_Goodwill
Note 9 - Goodwill | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 March 31, | As of June 30, | ||||||||
2014 | 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 | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
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. (“Atheeb NetSol”) 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. 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 the equity method. | |||||
Net book value at June 30, 2013 | $ | 545,483 | |||
Net loss applicable to NetSol | (370,332 | ) | |||
Net book value at March 31, 2014 | $ | 175,151 | |||
Note_11_Accounts_Payable_and_A
Note 11 - Accounts Payable and Accrued Expenses | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 March 31, | As of June 30, | ||||||||
2014 | 2013 | ||||||||
Accounts Payable | $ | 1,869,260 | $ | 825,025 | |||||
Accrued Liabilities | 2,376,042 | 2,056,003 | |||||||
Accrued Payroll | 27,791 | 25,529 | |||||||
Accrued Payroll Taxes | 201,838 | 218,084 | |||||||
Interest Payable | 78,164 | 71,872 | |||||||
Taxes Payable | 593,817 | 727,408 | |||||||
Other Payable | 103,226 | 103,226 | |||||||
Total | $ | 5,250,138 | $ | 4,027,147 | |||||
Note_12_Debts
Note 12 - Debts | 9 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||||||||
Debt and Capital Leases Disclosures [Text Block] | ' | |||||||||||||
NOTE 12 – DEBTS | ||||||||||||||
Notes payable and capital leases consisted of the following: | ||||||||||||||
Name | As of March 31 | Current | Long-Term | |||||||||||
2014 | Maturities | Maturities | ||||||||||||
D&O Insurance | -1 | $ | 60,594 | $ | 60,594 | $ | - | |||||||
Habib Bank Line of Credit | -2 | 2,405,354 | 2,405,354 | - | ||||||||||
Bank Overdraft Facility | -3 | 65,437 | 65,437 | - | ||||||||||
HSBC Loan | -4 | 899,450 | 337,895 | 561,555 | ||||||||||
Term Finance Facility | -5 | 756,888 | 252,296 | 504,592 | ||||||||||
Loan Payable Bank | -6 | 2,018,367 | 2,018,367 | - | ||||||||||
Subsidiary Capital Leases | -7 | 1,136,567 | 489,946 | 646,621 | ||||||||||
Loan From Related Party | -8 | 350,297 | 225,482 | 124,815 | ||||||||||
$ | 7,692,954 | $ | 5,855,371 | $ | 1,837,583 | |||||||||
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 | ||||||||||
Loan Payable Bank | -6 | 1,982,161 | 1,982,161 | - | ||||||||||
Subsidiary Capital Leases | -7 | 638,800 | 308,918 | 329,882 | ||||||||||
$ | 6,720,838 | $ | 5,308,626 | $ | 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 0.55% and 0.40% as of March 31, 2014 and June 30, 2013, respectively. | ||||||||||||||
(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 March 31, 2014 and June 30, 2013. In June 2012, the Company’s subsidiary, NTA 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 March 31, 2014 and June 30, 2013. Interest expense for the three and nine months ended March 31, 2014 was $9,536, and $26,262, respectively. Interest expense for the three and nine months ended March 31, 2013 was $9,334 and $22,876, 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 its landlord against the new office space. The Company has deposited $90,000 in a savings 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 $499,260. The annual interest rate was 4.75% and 5.20% as of March 31, 2014 and June 30, 2013, respectively. | ||||||||||||||
This overdraft facility requires that the aggregate amount of invoiced trade debtors (net of provisions for bad and doubtful debts and excluding intra-group debtors) of NTE, not exceeding 90 days old, will not be less than an amount equal to 200% of the facility. As of March 31, 2014, NTE was in compliance with this covenant. | ||||||||||||||
(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 VLSH. HSBC Bank guaranteed the loan up to a limit of £1,000,000, or $1,664,200, for a period of 5 years with monthly payments of £18,420, or $30,655. The interest rate was 4% which is 3.5% above the bank sterling base rate. The loan is securitized against debentures 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 March 31, 2014, the subsidiary has used this facility up to $899,450, of which $561,555 was shown as long term and the remaining $337,895, as current maturity. | ||||||||||||||
This facility requires that NTE’s adjusted tangible net worth would not be less than £600,000. For this purpose, adjusted tangible net worth means shareholders’ funds less intangible assets plus non-redeemable preference shares. In addition, NTE’s cash debt service coverage would not fall below 150% of the aggregate debt service cost. As of March 31, 2014, NTE was in compliance with this covenant. | ||||||||||||||
(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 $1,135,332, (secured by the first charge of Rs. 580 million or approximately $5.85 million over the land, building and equipment of the company). The interest rate was 12.90% and 12.13% as of March 31, 2014 and June 30, 2013, respectively, which is 2.75% above the six-month Karachi Inter Bank Offering Rate. As of the year ended June 30, 2013, NetSol PK has used a total of Rs. 87,500,000, or $867,195, of which $371,655 is shown as long term liabilities and the remainder of $495,540 as current maturity. As of March 31, 2014, NetSol PK has used a total of Rs.75,000,000, or $756,888, of which $504,592 is shown as long term liabilities and the remainder of $252,296, as current maturity. | ||||||||||||||
(6) 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. Total facility amount is Rs. 300,000,000 or $3,027,551. The balance of the loan availed at March 31, 2014 and June 30, 2013 was $2,018,367, and $1,982,161, respectively. The interest rate for the loans was 9.4% at March 31, 2014 and June 30, 2013. | ||||||||||||||
Both term finance and export refinance from Askari Bank Limited amounting to Rupees 312.5 million ($3,227,155) which requires NetSol PK to maintain a long term debt equity ratio of 60:40 and the current ratio of 1:1. As of March 31, 2014, NetSol PK was in compliance with this covenant. | ||||||||||||||
(7) 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 and nine months ended March 31, 2014 and 2013. | ||||||||||||||
Following is the aggregate minimum future lease payments under capital leases as of March 31, 2014: | ||||||||||||||
As of March 31, | ||||||||||||||
2014 | ||||||||||||||
Minimum Lease Payments | ||||||||||||||
Due FYE 3/31/15 | $ | 599,169 | ||||||||||||
Due FYE 3/31/16 | 446,982 | |||||||||||||
Due FYE 3/31/17 | 248,611 | |||||||||||||
Due FYE 3/31/18 | 19,565 | |||||||||||||
Total Minimum Lease Payments | 1,314,327 | |||||||||||||
Interest Expense relating to future periods | (177,760 | ) | ||||||||||||
Present Value of minimum lease payments | 1,136,567 | |||||||||||||
Less: Current portion | (489,946 | ) | ||||||||||||
Non-Current portion | $ | 646,621 | ||||||||||||
(8) In October 2013, the Company’s subsidiary, NTE, entered into a loan agreement with Investec a related party to finance VLS. The loan amount was £100,000, or $166,420, for a period of 1 year with monthly payments of £8,676, or $14,439. The interest rate was 4.1%. As of March 31, 2014, the subsidiary has used this facility up to $98,587, and was shown as current maturity. | ||||||||||||||
In March 2014, the Company’s subsidiary, VLS, entered into a loan agreement with Investec a related party. The loan amount was £150,000, or $249,430, for a period of 2 years with annual payments of £75,000, or $124,815. The interest rate was 3.13%. As of March 31, 2014, the subsidiary has used this facility up to $249,430, of which $124,415 was shown as long term liabilities and remainder $126,895 as current maturity including one month accrued interest. | ||||||||||||||
Note_13_Stockholders_Equity
Note 13 - Stockholders' Equity | 9 Months Ended |
Mar. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
NOTE 13 - STOCKHOLDERS’ EQUITY | |
Share-Based Payment Transactions | |
During the nine months ended March 31, 2014, the Company issued 40,000 shares of restricted common stock for services rendered by officers of the Company. These shares were valued at the fair market value of $427,200 and recorded as compensation expense in the accompanying condensed consolidated financial statements. | |
During the nine months ended March 31, 2014, the Company issued 3,448 shares of restricted common stock for services rendered by the independent members of the Board of Directors as part of their board compensation. These shares were valued at the fair market value of $36,826 and recorded as compensation expense in the accompanying condensed consolidated financial statements. | |
During the nine months ended March 31, 2014, the Company issued 9,000 shares of its common stock to employees pursuant to the terms of their employment agreements valued at $81,395 and recorded as compensation expense in the accompanying condensed consolidated financial statements. | |
During the nine months ended March 31, 2014, the Company issued 2,400 shares of its common stock for provision of services to unrelated consultants valued at $17,424 and recorded as general and administrative costs in the accompanying condensed consolidated financial statements. | |
During the nine months ended March 31, 2014, the Company issued 27,000 shares of its common stock for the settlement of a payable to a related party valued at $210,060. | |
Note_14_Incentive_and_NonStatu
Note 14 - Incentive and Non-Statutory Stock Option Plan | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
NOTE 14 - INCENTIVE AND NON-STATUTORY STOCK OPTION PLAN | |||||||||||||||||
Common stock purchase options and warrants consisted of the following: | |||||||||||||||||
OPTIONS: | |||||||||||||||||
# of shares | Weighted Ave | Weighted | Aggregated Intrinsic Value | ||||||||||||||
Exericse Price | Average | ||||||||||||||||
Remaining | |||||||||||||||||
Contractual | |||||||||||||||||
Life (in years) | |||||||||||||||||
Outstanding and exercisable, June 30, 2013 | 311,462 | $ | 15.65 | 3.3 | |||||||||||||
Granted | 112,793 | $ | 6.29 | ||||||||||||||
Exercised | (112,793 | ) | $ | 6.29 | |||||||||||||
Expired / Cancelled | (54,000 | ) | $ | 32.92 | |||||||||||||
Outstanding and exercisable, March 31, 2014 | 257,462 | $ | 12.03 | 2.88 | $ | - | |||||||||||
WARRANTS: | |||||||||||||||||
Outstanding and exercisable, June 30, 2013 | 163,124 | $ | 7.29 | 3.19 | |||||||||||||
Granted / adjusted | - | - | |||||||||||||||
Exercised | - | - | |||||||||||||||
Expired | - | - | |||||||||||||||
Outstanding and exercisable, March 31, 2014 | 163,124 | $ | 7.29 | 2.45 | $ | - | |||||||||||
The following table summarizes information about stock options and warrants outstanding and exercisable at March 31, 2014. | |||||||||||||||||
Exercise Price | Number | Weighted | Weighted | ||||||||||||||
Outstanding | Average | Ave | |||||||||||||||
and | Remaining | Exericse | |||||||||||||||
Exercisable | Contractual | Price | |||||||||||||||
Life | |||||||||||||||||
OPTIONS: | |||||||||||||||||
$0.10 | - | $9.90 | 183,462 | 3.22 | $ | 7.21 | |||||||||||
$10.00 | - | $19.90 | 14,000 | 1.86 | $ | 18.18 | |||||||||||
$20.00 | - | $29.90 | 60,000 | 2.07 | $ | 25.33 | |||||||||||
Totals | 257,462 | 2.88 | $ | 12.03 | |||||||||||||
WARRANTS: | |||||||||||||||||
$3.10 | - | $7.73 | 163,124 | 2.45 | $ | 7.29 | |||||||||||
Totals | 163,124 | 2.45 | $ | 7.29 | |||||||||||||
All options and warrants granted are vested and exercisable as of March 31, 2014. | |||||||||||||||||
The following table summarizes stock grants awarded as compensation: | |||||||||||||||||
# 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 | (65,173 | ) | $ | 10.68 | |||||||||||||
Unvested, March 31, 2014 | 21,726 | $ | 10.68 | ||||||||||||||
OPTIONS | |||||||||||||||||
During the nine months ended March 31, 2014, the Company granted 112,793 options to employees with exercise prices of $3.83 to $8 per share and expiration date of 1 to 3 months, vesting immediately. Using the Black-Scholes method to value the options, the Company recorded $189,405 in compensation expense for these options in the accompanying condensed consolidated financial statements. The fair market value was calculated using the Black-Scholes option pricing model with the following assumptions: | |||||||||||||||||
· | Risk-free interest rate - 0.05% - 0.06% | ||||||||||||||||
· | Expected life – 1 month - 3 months | ||||||||||||||||
· | Expected volatility – 17.5% - 51.26% | ||||||||||||||||
· | Expected dividend - 0% | ||||||||||||||||
Note_15_Operating_Segments
Note 15 - Operating Segments | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
NOTE 15 – OPERATING SEGMENTS | |||||||||||||||||
The Company has identified three segments for its products and services; North America, Europe, and Asia-Pacific. Our reportable segments are business units located in different global regions. Each business unit provides similar products and services; license fees for leasing and asset-based software, related maintenance fees, and implementation and IT consulting services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies due to their particular regional location. 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 identifiable assets as of March 31, 2014 and June 30, 2013: | |||||||||||||||||
As of March 31, | As of June 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Identifiable assets: | |||||||||||||||||
Corporate headquarters | $ | 15,913,979 | $ | 14,450,760 | |||||||||||||
North America | 2,540,223 | 2,997,145 | |||||||||||||||
Europe | 3,011,908 | 5,366,611 | |||||||||||||||
Asia - Pacific | 82,222,139 | 79,889,599 | |||||||||||||||
Consolidated | $ | 103,688,249 | $ | 102,704,115 | |||||||||||||
The following table presents a summary of operating information for the three and nine months ended March 31: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended March 31, | Ended March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues from unaffiliated customers: | |||||||||||||||||
North America | $ | 1,192,372 | $ | 2,137,965 | $ | 3,131,894 | $ | 4,196,360 | |||||||||
Europe | 2,217,627 | 1,842,729 | 4,986,009 | 5,762,058 | |||||||||||||
Asia - Pacific | 5,953,052 | 8,625,921 | 18,720,191 | 24,919,057 | |||||||||||||
Consolidated | $ | 9,363,051 | $ | 12,606,615 | $ | 26,838,094 | $ | 34,877,475 | |||||||||
Inter segment revenue | |||||||||||||||||
Europe | $ | 76,641 | $ | - | $ | 413,173 | $ | - | |||||||||
Asia - Pacific | 304,986 | 442,183 | 1,224,651 | 2,107,388 | |||||||||||||
Eliminated | $ | 381,627 | $ | 442,183 | $ | 1,637,824 | $ | 2,107,388 | |||||||||
Net income (loss) after taxes and before non-controlling interest: | |||||||||||||||||
Corporate headquarters | $ | (1,370,839 | ) | $ | (926,559 | ) | $ | (3,790,901 | ) | $ | (2,767,880 | ) | |||||
North America | 408,517 | 1,263,476 | 624,989 | 1,749,923 | |||||||||||||
Europe | 28,614 | 160,746 | (822,699 | ) | 815,938 | ||||||||||||
Asia - Pacific | (2,858,602 | ) | 2,527,550 | (1,828,992 | ) | 9,177,765 | |||||||||||
Discontinued operation | 1,480,786 | (493,994 | ) | 1,158,752 | (1,494,640 | ) | |||||||||||
Consolidated | $ | (2,311,524 | ) | $ | 2,531,219 | $ | (4,658,851 | ) | $ | 7,481,106 | |||||||
The following table presents a summary of capital expenditures for the nine months ended March 31: | |||||||||||||||||
For the Nine Months | |||||||||||||||||
Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Capital expenditures: | |||||||||||||||||
Corporate headquarters | $ | 4,531 | $ | 4,236 | |||||||||||||
North America | 16,388 | 51,195 | |||||||||||||||
Europe | 460,053 | 431,417 | |||||||||||||||
Asia - Pacific | 9,102,691 | 6,264,154 | |||||||||||||||
Consolidated | $ | 9,583,663 | $ | 6,751,002 | |||||||||||||
Note_16_Discontinued_Operation
Note 16 - Discontinued Operations | 9 Months Ended |
Mar. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' |
NOTE 16 – DISCONTINUED OPERATIONS | |
On March 31, 2014, the Company sold 100% of its stock in Vroozi, Inc. for a purchase price of $2,716,050 consisting of $1,810,700 cash, a $452,675 non-interest bearing note receivable due September 30, 2014, and a $452,675 non-interest bearing note receivable contingent upon the occurrence of future events; however, the future events must occur before March 31, 2015. The Company recognized a $1,870,871 gain on the sale, which is recorded in the net income (loss) from discontinued operations in the condensed consolidated statements of operations. The $452,674 non-interest bearing note receivable that is contingent upon the occurrence of future events was not included in the gain calculation due to the uncertainty that the future events would occur. | |
Note_17_NonControlling_Interes
Note 17 - Non-Controlling Interest In Subsidiary | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 | ||||||||
31-Mar-14 | |||||||||
NetSol PK | 36.37 | % | $ | 14,837,377 | |||||
NetSol-Innovation | 49.9 | % | 1,274,879 | ||||||
VLS, VLHS & VLSIL Combined | 49 | % | 260,789 | ||||||
Total | $ | 16,373,045 | |||||||
SUBSIDIARY | Non Controlling | Non-Controlling | |||||||
Interest % | Interest at | ||||||||
30-Jun-13 | |||||||||
NetSol PK | 34.81 | % | $ | 15,593,585 | |||||
NetSol-Innovation | 49.9 | % | 1,161,649 | ||||||
VLS, VLHS & VLSIL Combined | 49 | % | 481,121 | ||||||
Vroozi | 9.09 | % | 34,908 | ||||||
Total | $ | 17,271,263 | |||||||
NETSOL TECHNOLOGIES, LIMITED | |||||||||
During the nine months ended March 31, 2014, NetSol PK had the following equity transactions: | |||||||||
· | Paid a cash dividend of $743,363. | ||||||||
· | Declared a 10% stock dividend. | ||||||||
· | Issued 2,069,500 shares of common stock and received cash of $314,585 pursuant to employees exercising stock options. | ||||||||
In addition, during the nine months ended March 31, 2014, the Company purchased 42,500 shares of NetSol PK's common stock from the open market for $17,667. | |||||||||
NETSOL INNOVATION (PVT) LIMITED | |||||||||
During the nine months ended March 31, 2014, NetSol-Innovation paid a cash dividend of $1,500,000. | |||||||||
VROOZI, INC. | |||||||||
On March 31, 2014, the Company sold 100% of its shares in Vroozi. (See Note 16 Discontinued Operations.) | |||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Mar. 31, 2014 | |
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 standard is not expected to have a material impact on the Company’s consolidated financial statements. | |
In March 2013, the FASB issued Accounting Standards Update No. 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in 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. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. | |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)." ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. The Company is currently evaluating the impact of adopting ASU 2014-08 on the Company's results of operations or financial condition. |
Note_3_Earnings_Per_Share_Tabl
Note 3 - Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||||||||||
For the three months ended March 31, 2014 | For the nine months ended March 31, 2014 | ||||||||||||||||||||||||
Net Loss | Shares | Per Share | Net Loss | Shares | Per Share | ||||||||||||||||||||
Basic loss per share: | |||||||||||||||||||||||||
Net loss available to common shareholders | $ | (1,299,804 | ) | 9,092,834 | $ | (0.14 | ) | $ | (4,023,827 | ) | 9,034,532 | $ | (0.45 | ) | |||||||||||
Effect of dilutive securities | |||||||||||||||||||||||||
Stock options | - | - | - | - | - | - | |||||||||||||||||||
Warrants | - | - | - | - | - | - | |||||||||||||||||||
Diluted loss per share | $ | (1,299,804 | ) | 9,092,834 | $ | (0.14 | ) | $ | (4,023,827 | ) | 9,034,532 | $ | (0.45 | ) | |||||||||||
For the three months ended March 31, 2013 | For the nine months ended March 31, 2013 | ||||||||||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | ||||||||||||||||||||
Basic income per share: | |||||||||||||||||||||||||
Net income available to common shareholders | $ | 1,562,835 | 8,344,408 | $ | 0.19 | $ | 4,714,943 | 7,961,843 | $ | 0.59 | |||||||||||||||
Effect of dilutive securities | |||||||||||||||||||||||||
Stock options | - | 36,185 | - | - | 36,185 | - | |||||||||||||||||||
Warrants | - | 27,833 | - | - | 27,833 | - | |||||||||||||||||||
Diluted income per share | $ | 1,562,835 | 8,408,426 | $ | 0.19 | $ | 4,714,943 | 8,025,861 | $ | 0.59 | |||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||||||||||||||||||
As of March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Stock Options | 6,372 | - | |||||||||||||||||||||||
Warrants | 3,571 | - | |||||||||||||||||||||||
Convertible Note | - | 8,114 | |||||||||||||||||||||||
9,943 | 8,114 |
Note_6_Other_Current_Assets_Ta
Note 6 - Other Current Assets (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Schedule of Other Assets [Table Text Block] | ' | ||||||||
As of March 31, | As of June 30, | ||||||||
2014 | 2013 | ||||||||
Prepaid Expenses | $ | 770,812 | $ | 559,217 | |||||
Advance Income Tax | 804,966 | 887,893 | |||||||
Employee Advances | 61,891 | 43,794 | |||||||
Security Deposits | 203,957 | 189,382 | |||||||
Tender Money Receivable | 80,194 | 106,398 | |||||||
Other Receivables | 813,470 | 222,609 | |||||||
Other Assets | 235,412 | 197,915 | |||||||
Due From Related Party (1) | 46,868 | 66,106 | |||||||
Total | $ | 3,017,570 | $ | 2,273,314 |
Note_7_Property_and_Equipment_
Note 7 - Property and Equipment (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
As of March 31, | As of June 30, | ||||||||
2014 | 2013 | ||||||||
Office furniture and equipment | $ | 2,478,953 | $ | 2,508,975 | |||||
Computer equipment | 24,328,362 | 19,987,480 | |||||||
Assets under capital leases | 2,015,764 | 1,126,860 | |||||||
Building | 6,241,603 | 2,391,550 | |||||||
Land | 2,565,633 | 2,460,144 | |||||||
Capital work in progress | 3,331,291 | 5,104,283 | |||||||
Autos | 977,115 | 689,440 | |||||||
Improvements | 419,175 | 513,044 | |||||||
Subtotal | 42,357,896 | 34,781,776 | |||||||
Accumulated depreciation | (14,731,910 | ) | (13,803,407 | ) | |||||
Property and equipment, net | $ | 27,625,986 | $ | 20,978,369 | |||||
Schedule of Capital Leased Assets [Table Text Block] | ' | ||||||||
As of March 31, | As of June 30, | ||||||||
2014 | 2013 | ||||||||
Computer Equipment and Software | $ | 844,899 | $ | 454,002 | |||||
Furniture and Fixtures | 280,361 | 951 | |||||||
Vehicles | 890,504 | 671,907 | |||||||
Total | 2,015,764 | 1,126,860 | |||||||
Less: Accumulated Depreciation | (489,693 | ) | (350,048 | ) | |||||
Net | $ | 1,526,071 | $ | 776,812 |
Note_8_Intangible_Assets_Table
Note 8 - Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 | $ | 6,052,378 | $ | 242,702 | $ | 51,132,638 | |||||||||
Additions | 3,158,083 | - | - | 3,158,083 | |||||||||||||
Disposal | (591,216 | ) | - | - | (591,216 | ) | |||||||||||
Effect of translation adjustment | 836,407 | - | - | 836,407 | |||||||||||||
Accumulated amortization | (17,636,284 | ) | (5,928,217 | ) | (121,352 | ) | (23,685,853 | ) | |||||||||
Net balance - March 31, 2014 | $ | 30,604,548 | $ | 124,161 | $ | 121,350 | $ | 30,850,059 | |||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||||||
Year ended: | |||||||||||||||||
March 31, 2015 | $ | 2,468,920 | |||||||||||||||
March 31, 2016 | 2,341,279 | ||||||||||||||||
March 31, 2017 | 2,080,550 | ||||||||||||||||
March 31, 2018 | 2,017,453 | ||||||||||||||||
March 31, 2019 | 1,957,049 | ||||||||||||||||
Thereafter | 19,984,808 | ||||||||||||||||
$ | 30,850,059 |
Note_9_Goodwill_Tables
Note 9 - Goodwill (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Schedule of Goodwill [Table Text Block] | ' | ||||||||
As of March 31, | As of June 30, | ||||||||
2014 | 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) | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||
Schedule Of Joint Venture [Table Text Block] | ' | ||||
Net book value at June 30, 2013 | $ | 545,483 | |||
Net loss applicable to NetSol | (370,332 | ) | |||
Net book value at March 31, 2014 | $ | 175,151 |
Note_11_Accounts_Payable_and_A1
Note 11 - Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | ||||||||
As of March 31, | As of June 30, | ||||||||
2014 | 2013 | ||||||||
Accounts Payable | $ | 1,869,260 | $ | 825,025 | |||||
Accrued Liabilities | 2,376,042 | 2,056,003 | |||||||
Accrued Payroll | 27,791 | 25,529 | |||||||
Accrued Payroll Taxes | 201,838 | 218,084 | |||||||
Interest Payable | 78,164 | 71,872 | |||||||
Taxes Payable | 593,817 | 727,408 | |||||||
Other Payable | 103,226 | 103,226 | |||||||
Total | $ | 5,250,138 | $ | 4,027,147 |
Note_12_Debts_Tables
Note 12 - Debts (Tables) | 9 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||||||||
Schedule of Debt [Table Text Block] | ' | |||||||||||||
Name | As of March 31 | Current | Long-Term | |||||||||||
2014 | Maturities | Maturities | ||||||||||||
D&O Insurance | -1 | $ | 60,594 | $ | 60,594 | $ | - | |||||||
Habib Bank Line of Credit | -2 | 2,405,354 | 2,405,354 | - | ||||||||||
Bank Overdraft Facility | -3 | 65,437 | 65,437 | - | ||||||||||
HSBC Loan | -4 | 899,450 | 337,895 | 561,555 | ||||||||||
Term Finance Facility | -5 | 756,888 | 252,296 | 504,592 | ||||||||||
Loan Payable Bank | -6 | 2,018,367 | 2,018,367 | - | ||||||||||
Subsidiary Capital Leases | -7 | 1,136,567 | 489,946 | 646,621 | ||||||||||
Loan From Related Party | -8 | 350,297 | 225,482 | 124,815 | ||||||||||
$ | 7,692,954 | $ | 5,855,371 | $ | 1,837,583 | |||||||||
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 | ||||||||||
Loan Payable Bank | -6 | 1,982,161 | 1,982,161 | - | ||||||||||
Subsidiary Capital Leases | -7 | 638,800 | 308,918 | 329,882 | ||||||||||
$ | 6,720,838 | $ | 5,308,626 | $ | 1,412,212 | |||||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | |||||||||||||
As of March 31, | ||||||||||||||
2014 | ||||||||||||||
Minimum Lease Payments | ||||||||||||||
Due FYE 3/31/15 | $ | 599,169 | ||||||||||||
Due FYE 3/31/16 | 446,982 | |||||||||||||
Due FYE 3/31/17 | 248,611 | |||||||||||||
Due FYE 3/31/18 | 19,565 | |||||||||||||
Total Minimum Lease Payments | 1,314,327 | |||||||||||||
Interest Expense relating to future periods | (177,760 | ) | ||||||||||||
Present Value of minimum lease payments | 1,136,567 | |||||||||||||
Less: Current portion | (489,946 | ) | ||||||||||||
Non-Current portion | $ | 646,621 |
Note_14_Incentive_and_NonStatu1
Note 14 - Incentive and Non-Statutory Stock Option Plan (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
# of shares | Weighted Ave | Weighted | Aggregated Intrinsic Value | ||||||||||||||
Exericse Price | Average | ||||||||||||||||
Remaining | |||||||||||||||||
Contractual | |||||||||||||||||
Life (in years) | |||||||||||||||||
Outstanding and exercisable, June 30, 2013 | 311,462 | $ | 15.65 | 3.3 | |||||||||||||
Granted | 112,793 | $ | 6.29 | ||||||||||||||
Exercised | (112,793 | ) | $ | 6.29 | |||||||||||||
Expired / Cancelled | (54,000 | ) | $ | 32.92 | |||||||||||||
Outstanding and exercisable, March 31, 2014 | 257,462 | $ | 12.03 | 2.88 | $ | - | |||||||||||
WARRANTS: | |||||||||||||||||
Outstanding and exercisable, June 30, 2013 | 163,124 | $ | 7.29 | 3.19 | |||||||||||||
Granted / adjusted | - | - | |||||||||||||||
Exercised | - | - | |||||||||||||||
Expired | - | - | |||||||||||||||
Outstanding and exercisable, March 31, 2014 | 163,124 | $ | 7.29 | 2.45 | $ | - | |||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||||
Exercise Price | Number | Weighted | Weighted | ||||||||||||||
Outstanding | Average | Ave | |||||||||||||||
and | Remaining | Exericse | |||||||||||||||
Exercisable | Contractual | Price | |||||||||||||||
Life | |||||||||||||||||
OPTIONS: | |||||||||||||||||
$0.10 | - | $9.90 | 183,462 | 3.22 | $ | 7.21 | |||||||||||
$10.00 | - | $19.90 | 14,000 | 1.86 | $ | 18.18 | |||||||||||
$20.00 | - | $29.90 | 60,000 | 2.07 | $ | 25.33 | |||||||||||
Totals | 257,462 | 2.88 | $ | 12.03 | |||||||||||||
WARRANTS: | |||||||||||||||||
$3.10 | - | $7.73 | 163,124 | 2.45 | $ | 7.29 | |||||||||||
Totals | 163,124 | 2.45 | $ | 7.29 | |||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | ' | ||||||||||||||||
# 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 | (65,173 | ) | $ | 10.68 | |||||||||||||
Unvested, March 31, 2014 | 21,726 | $ | 10.68 |
Note_15_Operating_Segments_Tab
Note 15 - Operating Segments (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | ' | ||||||||||||||||
As of March 31, | As of June 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Identifiable assets: | |||||||||||||||||
Corporate headquarters | $ | 15,913,979 | $ | 14,450,760 | |||||||||||||
North America | 2,540,223 | 2,997,145 | |||||||||||||||
Europe | 3,011,908 | 5,366,611 | |||||||||||||||
Asia - Pacific | 82,222,139 | 79,889,599 | |||||||||||||||
Consolidated | $ | 103,688,249 | $ | 102,704,115 | |||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended March 31, | Ended March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues from unaffiliated customers: | |||||||||||||||||
North America | $ | 1,192,372 | $ | 2,137,965 | $ | 3,131,894 | $ | 4,196,360 | |||||||||
Europe | 2,217,627 | 1,842,729 | 4,986,009 | 5,762,058 | |||||||||||||
Asia - Pacific | 5,953,052 | 8,625,921 | 18,720,191 | 24,919,057 | |||||||||||||
Consolidated | $ | 9,363,051 | $ | 12,606,615 | $ | 26,838,094 | $ | 34,877,475 | |||||||||
Inter segment revenue | |||||||||||||||||
Europe | $ | 76,641 | $ | - | $ | 413,173 | $ | - | |||||||||
Asia - Pacific | 304,986 | 442,183 | 1,224,651 | 2,107,388 | |||||||||||||
Eliminated | $ | 381,627 | $ | 442,183 | $ | 1,637,824 | $ | 2,107,388 | |||||||||
Net income (loss) after taxes and before non-controlling interest: | |||||||||||||||||
Corporate headquarters | $ | (1,370,839 | ) | $ | (926,559 | ) | $ | (3,790,901 | ) | $ | (2,767,880 | ) | |||||
North America | 408,517 | 1,263,476 | 624,989 | 1,749,923 | |||||||||||||
Europe | 28,614 | 160,746 | (822,699 | ) | 815,938 | ||||||||||||
Asia - Pacific | (2,858,602 | ) | 2,527,550 | (1,828,992 | ) | 9,177,765 | |||||||||||
Discontinued operation | 1,480,786 | (493,994 | ) | 1,158,752 | (1,494,640 | ) | |||||||||||
Consolidated | $ | (2,311,524 | ) | $ | 2,531,219 | $ | (4,658,851 | ) | $ | 7,481,106 | |||||||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
For the Nine Months | |||||||||||||||||
Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Capital expenditures: | |||||||||||||||||
Corporate headquarters | $ | 4,531 | $ | 4,236 | |||||||||||||
North America | 16,388 | 51,195 | |||||||||||||||
Europe | 460,053 | 431,417 | |||||||||||||||
Asia - Pacific | 9,102,691 | 6,264,154 | |||||||||||||||
Consolidated | $ | 9,583,663 | $ | 6,751,002 |
Note_17_NonControlling_Interes1
Note 17 - Non-Controlling Interest In Subsidiary (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||
Schedule Of Non-Controlling Interests [Table Text Block] | ' | ||||||||
SUBSIDIARY | Non Controlling | Non-Controlling | |||||||
Interest % | Interest at | ||||||||
31-Mar-14 | |||||||||
NetSol PK | 36.37 | % | $ | 14,837,377 | |||||
NetSol-Innovation | 49.9 | % | 1,274,879 | ||||||
VLS, VLHS & VLSIL Combined | 49 | % | 260,789 | ||||||
Total | $ | 16,373,045 | |||||||
SUBSIDIARY | Non Controlling | Non-Controlling | |||||||
Interest % | Interest at | ||||||||
30-Jun-13 | |||||||||
NetSol PK | 34.81 | % | $ | 15,593,585 | |||||
NetSol-Innovation | 49.9 | % | 1,161,649 | ||||||
VLS, VLHS & VLSIL Combined | 49 | % | 481,121 | ||||||
Vroozi | 9.09 | % | 34,908 | ||||||
Total | $ | 17,271,263 |
Note_3_Earnings_Per_Share_Deta
Note 3 - Earnings Per Share (Details) - Basic and Diluted Earnings Per Share (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Basic loss per share: | ' | ' | ' | ' |
Net loss available to common shareholders (in Dollars) | ($1,299,804) | $1,562,835 | ($4,023,827) | $4,714,943 |
Net loss available to common shareholders | 9,092,834 | 8,344,408 | 9,034,532 | 7,961,843 |
Net loss available to common shareholders (in Dollars per share) | ($0.14) | $0.19 | ($0.45) | $0.59 |
Effect of dilutive securities | ' | ' | ' | ' |
Diluted loss per share (in Dollars) | ($1,299,804) | $1,562,835 | ($4,023,827) | $4,714,943 |
Diluted loss per share | 9,092,834 | 8,408,426 | 9,034,532 | 8,025,861 |
Diluted loss per share (in Dollars per share) | ($0.14) | $0.19 | ($0.45) | $0.59 |
Warrant [Member] | ' | ' | ' | ' |
Effect of dilutive securities | ' | ' | ' | ' |
Dilutive securities | ' | 27,833 | ' | 27,833 |
Employee Stock Option [Member] | ' | ' | ' | ' |
Effect of dilutive securities | ' | ' | ' | ' |
Dilutive securities | ' | 36,185 | ' | 36,185 |
Note_3_Earnings_Per_Share_Deta1
Note 3 - Earnings Per Share (Details) - Potential Dilutive Shares | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive shares | 9,943 | 8,114 |
Equity Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive shares | 6,372 | ' |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive shares | 3,571 | ' |
Convertible Debt Securities [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential dilutive shares | ' | 8,114 |
Note_4_Other_Comprehensive_Inc1
Note 4 - Other Comprehensive Income and Foreign Currency (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
NetSol [Member] | NetSol [Member] | NetSol [Member] | NetSol [Member] | |||
Note 4 - Other Comprehensive Income and Foreign Currency (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | ($14,915,572) | ($15,714,112) | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | ' | ' | $3,380,051 | ($848,917) | $798,540 | ($2,380,276) |
Note_5_Accounts_Receivable_Det
Note 5 - Accounts Receivable (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Receivables [Abstract] | ' | ' |
Accounts Receivable, Related Parties | $154,050 | $154,050 |
Note_6_Other_Current_Assets_De
Note 6 - Other Current Assets (Details) - Other Current Assets (USD $) | Mar. 31, 2014 | Jun. 30, 2013 | ||
Other Current Assets [Abstract] | ' | ' | ||
Prepaid Expenses | $770,812 | $559,217 | ||
Advance Income Tax | 804,966 | 887,893 | ||
Employee Advances | 61,891 | 43,794 | ||
Security Deposits | 203,957 | 189,382 | ||
Tender Money Receivable | 80,194 | 106,398 | ||
Other Receivables | 813,470 | 222,609 | ||
Other Assets | 235,412 | 197,915 | ||
Due From Related Party (1) | 46,868 | [1] | 66,106 | [1] |
Total | $3,017,570 | $2,273,314 | ||
[1] | Due from related party as of March 31, 2014 and June 30, 2013 is a receivable from Atheeb NetSol Saudi Company Limited. |
Note_7_Property_and_Equipment_1
Note 7 - Property and Equipment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation | $1,325,978 | $1,015,352 | $3,439,885 | $2,545,008 |
Cost of Services, Depreciation | 858,334 | 619,886 | 2,188,334 | 1,559,798 |
Interest Costs Capitalized | ' | ' | $1,325,493 | $904,700 |
Note_7_Property_and_Equipment_2
Note 7 - Property and Equipment (Details) - Property and Equipment, Net (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $42,357,896 | $34,781,776 |
Accumulated depreciation | -14,731,910 | -13,803,407 |
Property and equipment, net | 27,625,986 | 20,978,369 |
Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 2,478,953 | 2,508,975 |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 24,328,362 | 19,987,480 |
Assets Held under Capital Leases [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 2,015,764 | 1,126,860 |
Building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 6,241,603 | 2,391,550 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 2,565,633 | 2,460,144 |
Other Capitalized Property Plant and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 3,331,291 | 5,104,283 |
Automobiles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 977,115 | 689,440 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $419,175 | $513,044 |
Note_7_Property_and_Equipment_3
Note 7 - Property and Equipment (Details) - Fixed Assets Under Capital Leases (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Capital Leased Assets [Line Items] | ' | ' |
Fixed Assets Under Capital Lease | $2,015,764 | $1,126,860 |
Less: Accumulated Depreciation | -489,693 | -350,048 |
Net | 1,526,071 | 776,812 |
Computer Equipment [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Fixed Assets Under Capital Lease | 844,899 | 454,002 |
Furniture and Fixtures [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Fixed Assets Under Capital Lease | 280,361 | 951 |
Vehicles [Member] | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Fixed Assets Under Capital Lease | $890,504 | $671,907 |
Note_8_Intangible_Assets_Detai
Note 8 - Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
VLS [Member] | Customer Lists [Member] | ' | ' | ' | ' |
Note 8 - Intangible Assets (Details) [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '5 years | ' |
Amortization of Intangible Assets | $13,235 | $17,442 | $62,115 | $78,224 |
VLS [Member] | Technology [Member] | ' | ' | ' | ' |
Note 8 - Intangible Assets (Details) [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '5 years | ' |
Amortization of Intangible Assets | 12,935 | 24,792 | 37,712 | 49,702 |
Product Licenses [Member] | ' | ' | ' | ' |
Note 8 - Intangible Assets (Details) [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '8 years | ' |
Amortization of Intangible Assets | $612,792 | $413,137 | $1,329,470 | $1,455,383 |
Note_8_Intangible_Assets_Detai1
Note 8 - Intangible Assets (Details) - Intangible Assets (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Jun. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets - June 30, 2013 - cost | ' | $51,132,638 |
Additions | 3,158,083 | ' |
Disposal | -591,216 | ' |
Effect of translation adjustment | 836,407 | ' |
Accumulated amortization | -23,685,853 | ' |
Net balance - March 31, 2014 | 30,850,059 | 29,452,654 |
Licensing Agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets - June 30, 2013 - cost | ' | 44,837,558 |
Additions | 3,158,083 | ' |
Disposal | -591,216 | ' |
Effect of translation adjustment | 836,407 | ' |
Accumulated amortization | -17,636,284 | ' |
Net balance - March 31, 2014 | 30,604,548 | ' |
Customer Lists [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets - June 30, 2013 - cost | ' | 6,052,378 |
Accumulated amortization | -5,928,217 | ' |
Net balance - March 31, 2014 | 124,161 | ' |
Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets - June 30, 2013 - cost | ' | 242,702 |
Accumulated amortization | -121,352 | ' |
Net balance - March 31, 2014 | $121,350 | ' |
Note_8_Intangible_Assets_Detai2
Note 8 - Intangible Assets (Details) - Estimated Amortization Expense of Intangible Assets Over The Next Five Years (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Estimated Amortization Expense of Intangible Assets Over The Next Five Years [Abstract] | ' | ' |
31-Mar-15 | $2,468,920 | ' |
31-Mar-16 | 2,341,279 | ' |
31-Mar-17 | 2,080,550 | ' |
31-Mar-18 | 2,017,453 | ' |
31-Mar-19 | 1,957,049 | ' |
Thereafter | 19,984,808 | ' |
$30,850,059 | $29,452,654 |
Note_9_Goodwill_Details
Note 9 - Goodwill (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Jun. 30, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' | ' |
Goodwill, Impairment Loss | $0 | $0 |
Note_9_Goodwill_Details_Summar
Note 9 - Goodwill (Details) - Summary of Goodwill Acquired (USD $) | Mar. 31, 2014 | 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 |
UNITED STATES | ' | ' |
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 | $268,000 |
Numerator [Member] | Atheeb Netsol [Member] | ' |
Note 10 - Investment Under Equity Method (Details) [Line Items] | ' |
Profit Sharing Ratio | 50.1 |
Denominator [Member] | Atheeb Netsol [Member] | ' |
Note 10 - Investment Under Equity Method (Details) [Line Items] | ' |
Profit Sharing Ratio | 49.9 |
Atheeb [Member] | ' |
Note 10 - Investment Under Equity Method (Details) [Line Items] | ' |
Payments to Acquire Interest in Joint Venture | $266,930 |
Note_10_Investment_Under_Equit3
Note 10 - Investment Under Equity Method (Details) - Company's Investment in Equity (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Jun. 30, 2013 | |
Company's Investment in Equity [Abstract] | ' | ' |
Net book value | $175,151 | $545,483 |
Net loss applicable to NetSol | ($370,332) | ' |
Note_11_Accounts_Payable_and_A2
Note 11 - Accounts Payable and Accrued Expenses (Details) - Accounts Payable and Accrued Expenses (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Accounts Payable and Accrued Expenses [Abstract] | ' | ' |
Accounts Payable | $1,869,260 | $825,025 |
Accrued Liabilities | 2,376,042 | 2,056,003 |
Accrued Payroll | 27,791 | 25,529 |
Accrued Payroll Taxes | 201,838 | 218,084 |
Interest Payable | 78,164 | 71,872 |
Taxes Payable | 593,817 | 727,408 |
Other Payable | 103,226 | 103,226 |
Total | $5,250,138 | $4,027,147 |
Note_12_Debts_Details
Note 12 - Debts (Details) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2014 | Feb. 28, 2012 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Oct. 31, 2011 | Oct. 31, 2011 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2008 | Jun. 30, 2008 | Oct. 31, 2013 | Oct. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Feb. 28, 2012 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Numerator [Member] | Denominator [Member] | 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] | 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] | 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] | VLS [Member] | VLS [Member] | HSBC [Member] | Habib Bank Line of Credit [Member] | Habib Bank Line of Credit [Member] | Karachi Inter Bank [Member] | Investec [Member] | |
NetSol PK [Member] | NetSol PK [Member] | HSBC [Member] | Habib Bank Line of Credit [Member] | Habib Bank Line of Credit [Member] | Habib Bank Line of Credit [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] | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Investec [Member] | Investec [Member] | Investec [Member] | Karachi Inter Bank Offering Rate [Member] | Term Finance Facility [Member] | Term Finance Facility [Member] | Term Finance Facility [Member] | Term Finance Facility [Member] | Term Finance Facility [Member] | Asakari Bank Limited [Member] | Asakari Bank Limited [Member] | Asakari Bank Limited [Member] | Investec [Member] | Investec [Member] | USD ($) | |||||||
Asakari Bank Limited [Member] | Asakari Bank Limited [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | Term Finance Facility [Member] | USD ($) | PKR | USD ($) | USD ($) | PKR | USD ($) | PKR | USD ($) | USD ($) | GBP (£) | ||||||||||||
Note 12 - Debts (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate at Period End | ' | ' | ' | 0.55% | 0.40% | 1.90% | ' | 1.90% | ' | 1.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.10% | 4.10% | ' | ' | 12.90% | 12.90% | ' | 12.13% | 12.13% | ' | ' | ' | 3.13% | 3.13% | ' | 1.50% | 1.50% | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 | $1,664,200 | £ 1,000,000 | ' | ' | ' | ' | ' | ' | ' | $166,420 | £ 100,000 | ' | ' | $1,135,332 | 112,500,000 | ' | ' | ' | $3,027,551 | 300,000,000 | ' | $249,430 | £ 150,000 | ' | ' | ' | ' | ' |
Interest Expense, Debt | ' | ' | ' | ' | ' | 9,536 | 9,334 | 26,262 | 22,876 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,047,015 | ' | ' | ' | ' | ' | ' | ' | 98,587 | ' | ' | ' | ' | ' | ' | 3,227,155 | 312,500,000 | ' | 249,430 | ' | ' | ' | ' | ' | ' |
Loans Pledged as Collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000 | ' | ' | ' | ' |
Long-term Line of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 899,450 | ' | ' | ' | ' | 499,260 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% | ' | ' | 4.75% | ' | 5.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Overdraft Credit Facility Maximum Days of Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Overdraft Credit Facility Minimum Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Percentage of Voting Interests Acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | 51.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Maturity Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Periodic Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,655 | 18,420 | ' | ' | ' | ' | ' | ' | ' | 14,439 | 8,676 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 124,815 | 75,000 | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Line of Credit, Noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 561,555 | 710,675 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 504,592 | ' | ' | 371,655 | ' | ' | ' | ' | 124,415 | ' | ' | ' | ' | ' | ' |
Line of Credit, Current | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 337,895 | 336,339 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 252,296 | ' | ' | 495,540 | ' | ' | ' | ' | 126,895 | ' | ' | ' | ' | ' | ' |
Credit Facility Minimum Adjusted Tangible Net Worth | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Service Coverage Minimum Percentage of Debt Service Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Collateral Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 580,000,000 | 5,850,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Facility Interest Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' |
Line of Credit Facility, Current Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 756,888 | 75,000,000 | ' | 867,195 | 87,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving Loan, Maturity Frequency | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | '6 months | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Payable to Bank | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,018,367 | ' | $1,982,161 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate at Period End | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.40% | 9.40% | 9.40% | ' | ' | ' | ' | ' | ' | ' |
Long Term Debt Equity Ratio | 60 | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '2 years | ' | ' | ' | ' | '1 year |
Note_12_Debts_Details_Notes_Pa
Note 12 - Debts (Details) - Notes Payable (USD $) | Mar. 31, 2014 | Jun. 30, 2013 | ||
Note 12 - Debts (Details) - Notes Payable [Line Items] | ' | ' | ||
Notes Payable | $7,692,954 | $6,720,838 | ||
Current Maturities | 5,855,371 | 5,308,626 | ||
Long-Term Maturities | 1,837,583 | 1,412,212 | ||
D & O Insurance [Member] | ' | ' | ||
Note 12 - Debts (Details) - Notes Payable [Line Items] | ' | ' | ||
Notes Payable | 60,594 | [1] | 88,292 | [1] |
Current Maturities | 60,594 | [1] | 88,292 | [1] |
Long-Term Maturities | ' | [1] | ' | [1] |
Habib Bank Line of Credit [Member] | ' | ' | ||
Note 12 - Debts (Details) - Notes Payable [Line Items] | ' | ' | ||
Notes Payable | 2,405,354 | [2] | 1,785,237 | [2] |
Current Maturities | 2,405,354 | [2] | 1,785,237 | [2] |
Long-Term Maturities | ' | ' | [2] | |
Bank Overdraft Facility [Member] | ' | ' | ||
Note 12 - Debts (Details) - Notes Payable [Line Items] | ' | ' | ||
Notes Payable | 65,437 | [3] | 312,139 | [3] |
Current Maturities | 65,437 | [3] | 312,139 | [3] |
Long-Term Maturities | ' | [3] | ' | [3] |
HSBC Loan [Member] | ' | ' | ||
Note 12 - Debts (Details) - Notes Payable [Line Items] | ' | ' | ||
Notes Payable | 899,450 | [4] | 1,047,014 | [4] |
Current Maturities | 337,895 | [4] | 336,339 | [4] |
Long-Term Maturities | 561,555 | [4] | 710,675 | [4] |
Term Finance Facility [Member] | ' | ' | ||
Note 12 - Debts (Details) - Notes Payable [Line Items] | ' | ' | ||
Notes Payable | 756,888 | [5] | 867,195 | [5] |
Current Maturities | 252,296 | [5] | 495,540 | [5] |
Long-Term Maturities | 504,592 | [5] | 371,655 | [5] |
Loans Payable Bank [Member] | ' | ' | ||
Note 12 - Debts (Details) - Notes Payable [Line Items] | ' | ' | ||
Notes Payable | 2,018,367 | [6] | 1,982,161 | [6] |
Current Maturities | 2,018,367 | [6] | 1,982,161 | [6] |
Long-Term Maturities | ' | [6] | ' | [6] |
Subsidiary Capital Lease [Member] | ' | ' | ||
Note 12 - Debts (Details) - Notes Payable [Line Items] | ' | ' | ||
Notes Payable | 1,136,567 | [7] | ' | |
Current Maturities | 489,946 | [7] | ' | |
Long-Term Maturities | 646,621 | ' | ||
Loan From Related Party [Member] | ' | ' | ||
Note 12 - Debts (Details) - Notes Payable [Line Items] | ' | ' | ||
Notes Payable | 350,297 | [8] | ' | |
Current Maturities | 225,482 | [8] | ' | |
Long-Term Maturities | 124,815 | ' | ||
Subsidiary Capital Leases [Member] | ' | ' | ||
Note 12 - Debts (Details) - Notes Payable [Line Items] | ' | ' | ||
Notes Payable | ' | 638,800 | [7] | |
Current Maturities | ' | 308,918 | [7] | |
Long-Term Maturities | ' | $329,882 | [7] | |
[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 0.55% and 0.40% as of March 31, 2014 and June 30, 2013, respectively. | |||
[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 March 31, 2014 and June 30, 2013. In June 2012, the Company's subsidiary, NTA 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 March 31, 2014 and June 30, 2013. Interest expense for the three and nine months ended March 31, 2014 was $9,536, and $26,262, respectively. Interest expense for the three and nine months ended March 31, 2013 was $9,334 and $22,876, 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 its landlord against the new office space. The Company has deposited $90,000 in a savings 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 $499,260. The annual interest rate was 4.75% and 5.20% as of March 31, 2014 and June 30, 2013, respectively.This overdraft facility requires that the aggregate amount of invoiced trade debtors (net of provisions for bad and doubtful debts and excluding intra-group debtors) of NTE, not exceeding 90 days old, will not be less than an amount equal to 200% of the facility. As of March 31, 2014, NTE was in compliance with this covenant. | |||
[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 VLSH. HSBC Bank guaranteed the loan up to a limit of 1,000,000, or $1,664,200, for a period of 5 years with monthly payments of 18,420, or $30,655. The interest rate was 4% which is 3.5% above the bank sterling base rate. The loan is securitized against debentures 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 March 31, 2014, the subsidiary has used this facility up to $899,450, of which $561,555 was shown as long term and the remaining $337,895, as current maturity.This facility requires that NTE's adjusted tangible net worth would not be less than 600,000. For this purpose, adjusted tangible net worth means shareholders' funds less intangible assets plus non-redeemable preference shares. In addition, NTE's cash debt service coverage would not fall below 150% of the aggregate debt service cost. As of March 31, 2014, NTE was in compliance with this covenant. | |||
[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 $1,135,332, (secured by the first charge of Rs. 580 million or approximately $5.85 million over the land, building and equipment of the company). The interest rate was 12.90% and 12.13% as of March 31, 2014 and June 30, 2013, respectively, which is 2.75% above the six-month Karachi Inter Bank Offering Rate. As of the year ended June 30, 2013, NetSol PK has used a total of Rs. 87,500,000, or $867,195, of which $371,655 is shown as long term liabilities and the remainder of $495,540 as current maturity. As of March 31, 2014, NetSol PK has used a total of Rs.75,000,000, or $756,888, of which $504,592 is shown as long term liabilities and the remainder of $252,296, as current maturity. | |||
[6] | 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. Total facility amount is Rs. 300,000,000 or $3,027,551. The balance of the loan availed at March 31, 2014 and June 30, 2013 was $2,018,367, and $1,982,161, respectively. The interest rate for the loans was 9.4% at March 31, 2014 and June 30, 2013.Both term finance and export refinance from Askari Bank Limited amounting to Rupees 312.5 million ($3,227,155) which requires NetSol PK to maintain a long term debt equity ratio of 60:40 and the current ratio of 1:1. As of March 31, 2014, NetSol PK was in compliance with this covenant. | |||
[7] | 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 and nine months ended March 31, 2014 and 2013. | |||
[8] | In October 2013, the Company's subsidiary, NTE, entered into a loan agreement with Investec a related party to finance VLS. The loan amount was 100,000, or $166,420, for a period of 1 year with monthly payments of 8,676, or $14,439. The interest rate was 4.1%. As of March 31, 2014, the subsidiary has used this facility up to $98,587, and was shown as current maturity.In March 2014, the Company's subsidiary, VLS, entered into a loan agreement with Investec a related party. The loan amount was 150,000, or $249,430, for a period of 2 years with annual payments of 75,000, or $124,815. The interest rate was 3.13%. As of March 31, 2014, the subsidiary has used this facility up to $249,430, of which $124,415 was shown as long term liabilities and remainder $126,895 as current maturity including one month accrued interest. |
Note_12_Debts_Details_Minimum_
Note 12 - Debts (Details) - Minimum Future Lease Payments Under Capital Lease (USD $) | Mar. 31, 2014 |
Minimum Lease Payments | ' |
Due FYE 3/31/15 | $599,169 |
Due FYE 3/31/16 | 446,982 |
Due FYE 3/31/17 | 248,611 |
Due FYE 3/31/18 | 19,565 |
Total Minimum Lease Payments | 1,314,327 |
Interest Expense relating to future periods | -177,760 |
Present Value of minimum lease payments | 1,136,567 |
Less: Current portion | -489,946 |
Non-Current portion | $646,621 |
Note_13_Stockholders_Equity_De
Note 13 - Stockholders' Equity (Details) (USD $) | 9 Months Ended |
Mar. 31, 2014 | |
Note 13 - Stockholders' Equity (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 2,400 |
Allocated Share-based Compensation Expense | $17,424 |
Restricted Stock Units (RSUs) [Member] | Officer [Member] | ' |
Note 13 - Stockholders' Equity (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 40,000 |
Allocated Share-based Compensation Expense | 427,200 |
Restricted Stock Units (RSUs) [Member] | Director [Member] | ' |
Note 13 - Stockholders' Equity (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 3,448 |
Allocated Share-based Compensation Expense | 36,826 |
Settlement of Payable [Member] | ' |
Note 13 - Stockholders' Equity (Details) [Line Items] | ' |
Debt Conversion, Converted Instrument, Shares Issued | 27,000 |
Debt Conversion, Converted Instrument, Amount | 210,060 |
Employees [Member] | ' |
Note 13 - Stockholders' Equity (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 9,000 |
Allocated Share-based Compensation Expense | $81,395 |
Note_14_Incentive_and_NonStatu2
Note 14 - Incentive and Non-Statutory Stock Option Plan (Details) (USD $) | 9 Months Ended |
Mar. 31, 2014 | |
Note 14 - 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) | $6.29 |
Employee Stock Option [Member] | ' |
Note 14 - Incentive and Non-Statutory Stock Option Plan (Details) [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 112,793 |
Share-based Compensation (in Dollars) | $189,405 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Employee Stock Option [Member] | Minimum [Member] | ' |
Note 14 - 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) | $3.83 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '1 month |
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 | '1 month |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 17.50% |
Employee Stock Option [Member] | Maximum [Member] | ' |
Note 14 - 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) | $8 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '3 months |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.06% |
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 | 51.26% |
Note_14_Incentive_and_NonStatu3
Note 14 - Incentive and Non-Statutory Stock Option Plan (Details) - Common Stock Purchase Options and Warrants (USD $) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Jun. 30, 2013 | |
Common Stock Purchase Options and Warrants [Abstract] | ' | ' |
# of shares | 257,462 | 311,462 |
Weighted Average Exericse Price (in Dollars per share) | $12.03 | $15.65 |
Weighted Average Remaining Contractual Life (in years) | '2 years 321 days | '3 years 109 days |
# of shares | ' | 163,124 |
Weighted Average Exericse Price (in Dollars per Share) | ' | $7.29 |
Weighted Average Remaining Contractual Life (in years) | '2 years 164 days | '3 years 69 days |
Granted | 112,793 | ' |
Granted (in Dollars per share) | $6.29 | ' |
Exercised | -112,793 | ' |
Exercised (in Dollars per share) | $6.29 | ' |
Expired / Cancelled | -54,000 | ' |
Expired / Cancelled (in Dollars per share) | $32.92 | ' |
# of shares | 163,124 | ' |
Weighted Average Exericse Price (in Dollars per Share) | $7.29 | ' |
Weighted Average Remaining Contractual Life (in years) | '2 years 164 days | '3 years 69 days |
Note_14_Incentive_and_NonStatu4
Note 14 - Incentive and Non-Statutory Stock Option Plan (Details) - Average Life Remaining on the Options and Warrants (USD $) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Jun. 30, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Number Outstanding and Exercisable (in Shares) | 257,462 | ' |
Weighted Average Remaining Contractual Life | '2 years 321 days | ' |
Weighted Ave Exericse Price | $12.03 | ' |
Number Outstanding and Exercisable (in Shares) | 163,124 | ' |
Weighted Average Remaining Contractual Life | '2 years 164 days | '3 years 69 days |
Weighted Ave Exericse Price | $7.29 | ' |
Price Range $.10 - $9.90 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise Price - Lower | $0.10 | ' |
Number Outstanding and Exercisable (in Shares) | 183,462 | ' |
Weighted Average Remaining Contractual Life | '3 years 80 days | ' |
Weighted Ave Exericse Price | $7.21 | ' |
Exercise Price - Upper | $9.90 | ' |
Price Range $10.00 - $19.90 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise Price - Lower | $10 | ' |
Number Outstanding and Exercisable (in Shares) | 14,000 | ' |
Weighted Average Remaining Contractual Life | '1 year 313 days | ' |
Weighted Ave Exericse Price | $18.18 | ' |
Exercise Price - Upper | $19.90 | ' |
Price Range $20.00 - $29.90 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise Price - Lower | $20 | ' |
Number Outstanding and Exercisable (in Shares) | 60,000 | ' |
Weighted Average Remaining Contractual Life | '2 years 25 days | ' |
Weighted Ave Exericse Price | $25.33 | ' |
Exercise Price - Upper | $29.90 | ' |
Price Range $3.10 - $7.73 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise Price - Lower | $3.10 | ' |
Number Outstanding and Exercisable (in Shares) | 163,124 | ' |
Weighted Average Remaining Contractual Life | '2 years 164 days | ' |
Weighted Ave Exericse Price | $7.29 | ' |
Exercise Price - Upper | $7.73 | ' |
Note_14_Incentive_and_NonStatu5
Note 14 - Incentive and Non-Statutory Stock Option Plan (Details) - Summary of Stock Grants Awarded as Compensation (USD $) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Jun. 30, 2013 | |
Summary of Stock Grants Awarded as Compensation [Abstract] | ' | ' |
# Of Shares | 21,726 | ' |
Weighted Average Grant Date Fair Value | $10.68 | ' |
# Of Shares | 86,899 | 3,750 |
Weighted Average Grant Date Fair Value | $10.68 | $5.48 |
# Of Shares | -65,173 | -3,750 |
Weighted Average Grant Date Fair Value | $10.68 | $5.48 |
Note_15_Operating_Segments_Det
Note 15 - Operating Segments (Details) | 9 Months Ended |
Mar. 31, 2014 | |
Segment Reporting [Abstract] | ' |
Number of Operating Segments | 3 |
Note_15_Operating_Segments_Det1
Note 15 - Operating Segments (Details) - Identifiable Assets and Capital Expenditures (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Identifiable assets: | ' | ' |
Capital expenditures | $103,688,249 | $102,704,115 |
Corporate Headquarters [Member] | ' | ' |
Identifiable assets: | ' | ' |
Capital expenditures | 15,913,979 | 14,450,760 |
North America [Member] | ' | ' |
Identifiable assets: | ' | ' |
Capital expenditures | 2,540,223 | 2,997,145 |
Europe [Member] | ' | ' |
Identifiable assets: | ' | ' |
Capital expenditures | 3,011,908 | 5,366,611 |
Asia Pacific [Member] | ' | ' |
Identifiable assets: | ' | ' |
Capital expenditures | $82,222,139 | $79,889,599 |
Note_15_Operating_Segments_Det2
Note 15 - Operating Segments (Details) - Operating Information (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | $9,363,051 | $12,606,615 | $26,838,094 | $34,877,475 |
Net Income Loss After Taxes and Before Controlling Interest | -2,311,524 | 2,531,219 | -4,658,851 | 7,481,106 |
Discontinued operation | 1,480,786 | -493,994 | 1,158,752 | -1,494,640 |
Unaffiliated Customers [Member] | North America [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 1,192,372 | 2,137,965 | 3,131,894 | 4,196,360 |
Unaffiliated Customers [Member] | Europe [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 2,217,627 | 1,842,729 | 4,986,009 | 5,762,058 |
Unaffiliated Customers [Member] | Asia Pacific [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 5,953,052 | 8,625,921 | 18,720,191 | 24,919,057 |
Unaffiliated Customers [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 9,363,051 | 12,606,615 | 26,838,094 | 34,877,475 |
Intersegment Eliminations [Member] | Europe [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 76,641 | ' | 413,173 | ' |
Intersegment Eliminations [Member] | Asia Pacific [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 304,986 | 442,183 | 1,224,651 | 2,107,388 |
Intersegment Eliminations [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 381,627 | 442,183 | 1,637,824 | 2,107,388 |
North America [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net Income Loss After Taxes and Before Controlling Interest | 408,517 | 1,263,476 | 624,989 | 1,749,923 |
Europe [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net Income Loss After Taxes and Before Controlling Interest | 28,614 | 160,746 | -822,699 | 815,938 |
Asia Pacific [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net Income Loss After Taxes and Before Controlling Interest | -2,858,602 | 2,527,550 | -1,828,992 | 9,177,765 |
Corporate Headquarters [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net Income Loss After Taxes and Before Controlling Interest | -1,370,839 | -926,559 | -3,790,901 | -2,767,880 |
Discontinued Operations [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Discontinued operation | $1,480,786 | ($493,994) | $1,158,752 | ($1,494,640) |
Note_15_Operating_Segments_Det3
Note 15 - Operating Segments (Details) - Capital Expenditure (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Capital expenditures: | ' | ' |
Capital expenditures | $9,583,663 | $6,751,002 |
Corporate Headquarters [Member] | ' | ' |
Capital expenditures: | ' | ' |
Capital expenditures | 4,531 | 4,236 |
North America [Member] | ' | ' |
Capital expenditures: | ' | ' |
Capital expenditures | 16,388 | 51,195 |
Europe [Member] | ' | ' |
Capital expenditures: | ' | ' |
Capital expenditures | 460,053 | 431,417 |
Asia Pacific [Member] | ' | ' |
Capital expenditures: | ' | ' |
Capital expenditures | $9,102,691 | $6,264,154 |
Note_16_Discontinued_Operation1
Note 16 - Discontinued Operations (Details) (Vroozi [Member], USD $) | 1 Months Ended |
Mar. 31, 2014 | |
Note 16 - Discontinued Operations (Details) [Line Items] | ' |
Disposal Group Including Discontinued Operation Percentage of Shares Sold | 100.00% |
Disposal Group Including Discontinued Operations Price Sold | $2,716,050 |
Proceeds from Divestiture of Businesses | 1,810,700 |
Disposal Group Including Discontinued Operation Note Receivable | 452,675 |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 1,870,871 |
Contingent Upon Future Events [Member] | ' |
Note 16 - Discontinued Operations (Details) [Line Items] | ' |
Disposal Group Including Discontinued Operation Note Receivable | $452,675 |
Note_17_NonControlling_Interes2
Note 17 - Non-Controlling Interest In Subsidiary (Details) (USD $) | 9 Months Ended |
Mar. 31, 2014 | |
Vroozi [Member] | ' |
Note 17 - Non-Controlling Interest In Subsidiary (Details) [Line Items] | ' |
Disposal Group Including Discontinued Operation Percentage of Shares Sold | 100.00% |
NetSol PK [Member] | ' |
Note 17 - Non-Controlling Interest In Subsidiary (Details) [Line Items] | ' |
Dividends, Common Stock | $743,363 |
Percentage of Stock Dividend Declared | 10.00% |
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | 2,069,500 |
Stock Issued During Period, Value, Share-based Compensation, Gross | 314,585 |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Changes Purchase Of Interest By Parent, shares (in Shares) | 42,500 |
NetSol Technologies, Limited [Member] | ' |
Note 17 - Non-Controlling Interest In Subsidiary (Details) [Line Items] | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent | 17,667 |
NetSol Innovation [Member] | ' |
Note 17 - Non-Controlling Interest In Subsidiary (Details) [Line Items] | ' |
Dividends, Cash | $1,500,000 |
Note_17_NonControlling_Interes3
Note 17 - Non-Controlling Interest In Subsidiary (Details) - Non-Controlling Interests in Subsidiaries (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Note 17 - Non-Controlling Interest In Subsidiary (Details) - Non-Controlling Interests in Subsidiaries [Line Items] | ' | ' |
Non-Controlling Interest | $16,373,045 | $17,271,263 |
NetSol PK [Member] | ' | ' |
Note 17 - Non-Controlling Interest In Subsidiary (Details) - Non-Controlling Interests in Subsidiaries [Line Items] | ' | ' |
Non Controlling Interest % | 36.37% | 34.81% |
Non-Controlling Interest | 14,837,377 | 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 | 1,274,879 | 1,161,649 |
VLS, VLHS & VLSIL Combined [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 | 260,789 | 481,121 |
Vroozi [Member] | ' | ' |
Note 17 - Non-Controlling Interest In Subsidiary (Details) - Non-Controlling Interests in Subsidiaries [Line Items] | ' | ' |
Non Controlling Interest % | ' | 9.09% |
Non-Controlling Interest | ' | $34,908 |