NetSol (NTWK) 10-Q 10 May 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2016	Mar. 06, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	NETSOL TECHNOLOGIES INC
Entity Central Index Key	1,039,280
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,558,600
Trading Symbol	NTWK
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 11,881,159	$ 14,168,957
Restricted cash	90,000	90,000
Accounts receivable, net of allowance of $501,496 and $524,565	6,072,413	6,480,344
Accounts receivable, net - related party	6,467,551	3,491,899
Revenues in excess of billings	8,860,248	5,267,275
Other current assets	2,756,621	2,012,190
Total current assets	36,127,992	$ 31,510,665
Investment	555,556
Property and equipment, net	23,178,350	$ 25,119,634
Intangible assets, net	20,276,715	22,815,467
Goodwill	9,516,568	9,516,568
Total assets	89,655,181	88,962,334
Current liabilities:
Accounts payable and accrued expenses	6,354,959	5,952,561
Current portion of loans and obligations under capitalized leases	4,538,218	3,896,353
Unearned revenues	3,412,019	4,897,327
Common stock to be issued	88,324	88,324
Total current liabilities	14,393,520	14,834,565
Long term loans and obligations under capitalized leases; less current maturities	315,653	487,492
Total liabilities	$ 14,709,173	$ 15,322,057
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par value; 500,000 shares authorized;
Common stock, $.01 par value; 14,500,000 shares authorized;10,558,600 shares issued and 10,531,321 outstanding as of March 31, 2016 and 10,307,826 shares issued and 10,280,547 outstanding as of June 30, 2015	$ 105,586	$ 103,078
Additional paid-in-capital	120,513,094	119,209,807
Treasury stock (27,279 shares)	(415,425)	(415,425)
Accumulated deficit	(39,412,605)	(40,726,121)
Stock subscription receivable	(947,353)	(1,204,603)
Other comprehensive loss	(18,898,747)	(17,167,100)
Total NetSol stockholders’ equity	60,944,550	59,799,636
Non-controlling interest	14,001,458	13,840,641
Total stockholders’ equity	74,946,008	73,640,277
Total liabilities and stockholders’ equity	$ 89,655,181	$ 88,962,334

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 501,496	$ 524,565
Preferred stock, par value	$ .01	$ .01
Preferred stock, shares authorized	500,000	500,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	14,500,000	14,500,000
Common stock, shares issued	10,558,600	10,307,826
Common stock, shares outstanding	10,531,321	10,280,547
Treasury stock, shares	27,279	27,279

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Net Revenues:
License fees	$ 1,358,469	$ 1,215,201	$ 3,261,514	$ 4,900,469
Maintenance fees	3,388,526	2,978,587	9,641,236	8,963,240
Services	8,159,490	$ 7,022,982	24,487,467	$ 16,650,646
License fees - related party	484,644		484,644
Maintenance fees - related party	28,423	$ 43,948	218,409	$ 237,523
Services - related party	2,554,347	1,813,197	7,377,430	4,901,792
Total net revenues	15,973,899	13,073,915	45,470,700	35,653,670
Cost of revenues:
Salaries and consultants	5,542,829	4,895,515	15,468,284	13,310,632
Travel	543,672	760,065	1,779,134	1,772,289
Depreciation and amortization	1,483,695	1,912,492	4,419,396	5,514,812
Other	860,868	792,737	2,822,347	2,129,646
Total cost of revenues	8,431,064	8,360,809	24,489,161	22,727,379
Gross profit	7,542,835	4,713,106	20,981,539	12,926,291
Operating expenses:
Selling and marketing	1,896,295	1,712,151	5,597,689	4,419,466
Depreciation and amortization	321,230	551,127	898,018	1,569,903
General and administrative	3,957,028	3,997,186	10,859,751	11,584,696
Research and development cost	132,123	84,038	362,117	230,740
Total operating expenses	6,306,676	6,344,502	17,717,575	17,804,805
Income (loss) from operations	1,236,159	(1,631,396)	3,263,964	(4,878,514)
Other income and (expenses)
Gain (loss) on sale of assets	14,848	6,496	642	(74,099)
Interest expense	(56,070)	(45,234)	(196,399)	(165,592)
Interest income	29,673	97,094	117,084	261,091
Gain (loss) on foreign currency exchange transactions	12,955	(247,845)	(235,291)	(589,707)
Other income	25,258	607,111	200,256	625,650
Total other income (expenses)	26,664	417,622	(113,708)	57,343
Net income (loss) before income taxes	1,262,823	(1,213,774)	3,150,256	(4,821,171)
Income tax provision	(106,209)	(107,398)	(454,707)	(235,157)
Net income (loss)	1,156,614	(1,321,172)	2,695,549	(5,056,328)
Non-controlling interest	(307,135)	(315,073)	(1,382,033)	214,888
Net income (loss) attributable to NetSol	$ 849,479	$ (1,636,245)	$ 1,313,516	$ (4,841,440)
Net income (loss) per common share
Basic	$ 0.08	$ (0.17)	$ 0.13	$ (0.51)
Diluted	$ 0.08	$ (0.17)	$ 0.12	$ (0.51)
Weighted average number of shares outstanding
Basic	10,427,664	9,914,321	10,338,740	9,573,336
Diluted	10,643,479	9,914,321	10,554,555	9,573,336

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 849,479	$ (1,636,245)	$ 1,313,516	$ (4,841,440)
Other comprehensive income (loss):
Translation adjustment	(333,340)	291,037	(2,247,813)	(1,618,429)
Comprehensive income (loss)	516,139	(1,345,208)	(934,297)	(6,459,869)
Comprehensive income (loss) attributable to non-controlling interest	19,111	(247,856)	(516,166)	(927,897)
Comprehensive income (loss) attributable to NetSol	$ 497,028	$ (1,097,352)	$ (418,131)	$ (5,531,972)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ 2,695,549	$ (5,056,328)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	5,317,414	$ 7,084,715
Provision for bad debts	49,605
(Gain) loss on sale of assets	(642)	$ 74,099
Stock issued for services	694,693	1,119,721
Fair market value of warrants and stock options granted	145,716	466,866
Changes in operating assets and liabilities:
Accounts receivable	115,428	(2,369,950)
Accounts receivable - related party	(3,111,316)	(198,640)
Revenues in excess of billing	(3,248,121)	(2,734,788)
Other current assets	(838,913)	188,048
Accounts payable and accrued expenses	617,112	1,008,270
Unearned revenue	(1,305,724)	2,984,297
Net cash provided by operating activities	1,130,801	2,566,310
Cash flows from investing activities:
Purchases of property and equipment	(2,523,865)	(2,499,314)
Sales of property and equipment	556,280	$ 209,718
Investment	(555,556)
Purchase of subsidiary shares from open market	(767,397)	$ (577,222)
Net cash used in investing activities	(3,290,538)	(2,866,818)
Cash flows from financing activities:
Proceeds from sale of common stock	64,931	1,863,000
Proceeds from the exercise of stock options and warrants	728,699	116,400
Proceeds from exercise of subsidiary options	$ 16,744	12,306
Restricted cash		2,438,844
Dividend paid by subsidiary to Non controlling interest		$ (780,106)
Proceeds from bank loans	$ 1,334,285
Payments on capital lease obligations and loans - net	(736,405)	$ (3,459,143)
Net cash provided by financing activities	1,408,254	191,301
Effect of exchange rate changes	(1,536,315)	(466,130)
Net decrease in cash and cash equivalents	(2,287,798)	(575,337)
Cash and cash equivalents, beginning of the period	14,168,957	11,462,695
Cash and cash equivalents, end of period	11,881,159	10,887,358
SUPPLEMENTAL DISCLOSURES:
Interest	195,737	107,418
Taxes	$ 195,104	$ 74,850

Basis of Presentation and Princ

Basis of Presentation and Principles of Consolidation	9 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Principles of Consolidation	NOTE 1 - BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The Company designs, develops, markets, and exports proprietary software products to customers in the automobile financing and leasing, banking, and financial services industries worldwide. The Company also provides system integration, consulting, and 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, 2015. 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”) NTPK (Thailand) Co. Limited (“NTPK Thailand”) NetSol Technologies Thailand Limited (“NetSol Thai”) NetSol Technologies (Beijing) Co. Ltd. (“NetSol Beijing”) NetSol Omni (Private) Ltd. (“Omni”) NetSol Technologies (GmbH) (“NTG”) Majority-owned Subsidiaries NetSol Technologies, Ltd. (“NetSol PK”) For comparative purposes, prior year’s condensed consolidated financial statements have been reclassified to conform to report classifications of the current year.

Accounting Policies

Accounting Policies	9 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Accounting Policies	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. Concentration of Credit Risk Cash includes cash on hand and demand deposits in accounts maintained within the United States as well as in foreign countries. Certain financial instruments, which subject the Company to concentration of credit risk, consist of cash and restricted cash. The Company maintains balances at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation insured limits for the banks located in the Unites States. Balances at financial institutions within certain foreign countries are not covered by insurance. As of March 31, 2016 and June 30, 2015, the Company had uninsured deposits related to cash deposits in accounts maintained within foreign entities of approximately $8,847,577 and $8,969,443, respectively. The Company has not experienced any losses in such accounts. The Company’s operations are carried out globally. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments of each country and by the general state of the country’s economy. The Company’s operations in each foreign country are subject to specific considerations and significant risks not typically associated with companies in economically developed nations. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Also, due to the current economic conditions in China and challenges being faced by the Chinese economy, the Company may face a risk of reduction in future revenue growth and non-collection of receivables from the customers in China. New Accounting Pronouncements In May 2014, the (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date of the new revenue standard by one year, which will make it effective for the Company in the first quarter of its fiscal year ending June 30, 2019. The Company is currently in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation — Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) (ASU 2014-12). The guidance applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. For all entities, the amendments in this update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The effective date is the same for both public business entities and all other entities. The Company is currently evaluating the impact of adopting ASU 2014-12 on the Company’s results of operations or financial condition. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). The guidance in ASU 2014-15 sets forth management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing financial statements for interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, as well as whether it is probable that management’s plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement – Extraordinary and Unusual items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01). The amendment eliminates from U.S. GAAP the concept of extraordinary items. This guidance is effective for the Company in the first quarter of fiscal 2017. Early adoption is permitted and allows the Company to apply the amendment prospectively or retrospectively. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In February 2015, FASB issued ASU No. 2015-02, (Topic 810): Amendments to the Consolidation Analysis. ASU No. 2015-02 provides amendments to respond to stakeholders’ concerns about the current accounting for consolidation of certain legal entities. Stakeholders expressed concerns that GAAP might require a reporting entity to consolidate another legal entity in situations in which the reporting entity’s contractual rights do not give it the ability to act primarily on its own behalf, the reporting entity does not hold a majority of the legal entity’s voting rights, or the reporting entity is not exposed to a majority of the legal entity’s economic benefits or obligations. ASU No. 2015-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. In April 2015, FASB issued ASU No. 2015-03, (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In April 2015, FASB issued ASU No. 2015-05, (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangements. In September 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-16, Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments.” In November 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes” (ASU 2015-17), which changes how deferred taxes are classified on the balance sheet and is effective for financial statements issued for annual periods beginning after December 15, 2016, with early adoption permitted. ASU 2015-17 requires all deferred tax assets and liabilities to be classified as non-current. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (ASU 2016-01), which requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income and updates certain presentation and disclosure requirements. ASU 2016-01 is effective beginning after December 15, 2017. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which requires lessees to recognize right-of-use assets and lease liabilities, for all leases, with the exception of short-term leases, at the commencement date of each lease. This ASU requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted. The amendments of this update should be applied using a modified retrospective approach, which requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update 2016-07, Investments- Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this standard would have on our financial condition, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” The guidance simplifies accounting for share-based payments, most notably by requiring all excess tax benefits and tax deficiencies to be recorded as income tax benefits or expense in the income statement and by allowing entities to recognize forfeitures of awards when they occur. This new guidance is effective for annual reporting periods beginning after December 15, 2016 and may be adopted prospectively or retroactively. We are currently evaluating the impact the adoption of this standard would have on our financial condition, results of operations and cash flows.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Mar. 31, 2016
Net income (loss) per common share
Earnings Per Share	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, and stock awards. The components of basic and diluted earnings per share were as follows: For the three months ended March 31, 2016 For the nine months ended March 31, 2016 Net Income Shares Per Share Net Income Shares Per Share Basic income per share: Net income available to common shareholders $ 849,479 10,427,664 $ 0.08 $ 1,313,516 10,338,740 $ 0.13 Effect of dilutive securities Stock options - 212,674 - - 212,674 - Warrants - 3,141 - - 3,141 - Diluted income per share $ 849,479 10,643,479 $ 0.08 $ 1,313,516 10,554,555 $ 0.12 For the three months ended March 31, 2015 For the nine months ended March 31, 2015 Net Loss Shares Per Share Net Loss Shares Per Share Basic loss per share: Net loss available to common shareholders $ (1,636,245 ) 9,914,321 $ (0.17 ) $ (4,841,440 ) 9,573,336 $ (0.51 ) Effect of dilutive securities Stock options - - - - - - Warrants - - - - - - Diluted loss per share $ (1,636,245 ) 9,914,321 $ (0.17 ) $ (4,841,440 ) 9,573,336 $ (0.51 ) The following potential dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive. For the Three Months For the Nine Months Ended March 31, Ended March 31, 2016 2015 2016 2015 Stock Options - 727,462 - 727,462 Warrants - 163,124 - 163,124 - 890,586 - 890,586

Other Comprehensive Income and

Other Comprehensive Income and Foreign Currency	9 Months Ended
	Mar. 31, 2016
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 the Pakistan Rupee; NTPK Thailand and NetSol Thai use the Thai Baht; Australia uses the Australian dollar; and NetSol Beijing uses the Chinese Yuan as the functional currencies. NetSol Technologies, Inc., and its subsidiary, NTA, 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 $18,898,747 and $17,167,100 as of March 31, 2016 and June 30, 2015, respectively. During the three and nine months ended March 31, 2016, comprehensive income (loss) in the consolidated statements of operations included a translation loss of $352,451 and $1,731,647, respectively. During the three and nine months ended March 31, 2015, comprehensive income (loss) in the consolidated statements of operations included a translation gain of $538,893 and a loss of $690,532, respectively.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 5 – RELATED PARTY TRANSACTIONS NetSol-Innovation In November 2004, the Company entered into a joint venture agreement with the Innovation Group called NetSol-Innovation (Pvt) Ltd., (“NetSol-Innovation”), a Pakistani company. NetSol-Innovation provides support services to the Innovation Group. During the three and nine months ended March 31, 2016, NetSol-Innovation provided services of $2,069,940 and $6,096,466, respectively. During the three and nine months ended March 31, 2015, NetSol-Innovation provided services of $1,524,528 and $4,275,004, respectively. Accounts receivable at March 31, 2016 and June 30, 2015 were $6,047,908 and $3,226,733, respectively. Investec Asset Finance In October 2011, NTE entered into an agreement with the Investec Asset Finance to acquire VLS. NTE and VLS both provide support services to Investec. During the three and nine months ended March 31, 2016, NTE and VLS provided license, maintenance and services of $997,474 and $1,984,017, respectively. During the three and nine months ended March 31, 2015, NTE provided maintenance and services of $332,617 and $864,311, respectively. Accounts receivable at March 31, 2016 and June 30, 2015 were $419,643 and $265,166, respectively.

Other Current Assets

Other Current Assets	9 Months Ended
	Mar. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	NOTE 6 - OTHER CURRENT ASSETS Other current assets consisted of the following: As of As of March 31, 2016 June 30, 2015 Prepaid Expenses $ 550,801 $ 452,314 Advance Income Tax 1,193,994 895,075 Employee Advances 143,163 36,816 Security Deposits 208,793 195,336 Other Receivables 322,361 322,647 Other Assets 337,509 110,002 Total $ 2,756,621 $ 2,012,190

Investment Under Cost Method

Investment Under Cost Method	9 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Investment Under Cost Method	NOTE 7 – INVESTMENT UNDER COST METHOD On March 2, 2016, the Company purchased a 4.9% interest in a non-affiliated, non-public company for $555,556, which the Company accounted for under the cost method. The Company has determined that there is no change in the value of the investment at March 31, 2016.

Property and Equipment

Property and Equipment	9 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 8 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following: As of As of March 31, 2016 June 30, 2015 Office Furniture and Equipment $ 3,287,876 $ 3,104,375 Computer Equipment 25,728,409 25,911,422 Assets Under Capital Leases 2,090,273 1,887,767 Building 8,989,221 8,743,130 Land 2,400,421 2,451,577 Capital Work In Progress 311,153 392,243 Autos 974,070 943,873 Improvements 383,499 204,779 Subtotal 44,164,922 43,639,166 Accumulated Depreciation (20,986,572 ) (18,519,532 ) Property and Equipment, Net $ 23,178,350 $ 25,119,634 For the three and nine months ended March 31, 2016, depreciation expense totaled $1,115,544 and $3,242,057, respectively. Of these amounts, $796,722 and $2,344,039, respectively, are reflected in cost of revenues. For the three and nine months ended March 31, 2015, depreciation expense totaled $1,504,330 and $4,233,689, respectively. Of these amounts, $1,038,817 and $2,889,772, respectively, are reflected in cost of revenues. Following is a summary of fixed assets held under capital leases as of March 31, 2016 and June 30, 2015: As of As of March 31, 2016 June 30, 2015 Computers and Other Equipment $ 516,208 $ 590,625 Furniture and Fixtures 406,742 414,023 Vehicles 1,167,323 883,119 Total 2,090,273 1,887,767 Less: Accumulated Depreciation - Net (675,524 ) (577,215 ) $ 1,414,749 $ 1,310,552

Intangible Assets

Intangible Assets	9 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	NOTE 9 - INTANGIBLE ASSETS Intangible assets consisted of the following: As of As of March 31, 2016 June 30, 2015 Product Licenses - Cost $ 48,632,368 $ 48,632,368 Additions - - Effect of Translation Adjustment (3,281,529 ) (2,325,008 ) Accumulated Amortization (25,074,124 ) (23,491,893 ) Net Balance $ 20,276,715 $ 22,815,467 (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, and the unamortized amount of $20,276,715 will be amortized over the next 8 years. Amortization expense for the three and nine months ended March 31, 2016 was $686,973 and $2,075,357, respectively. Amortization expense for the three and nine months ended March 31, 2015 was $873,675 and $2,625,040, respectively. (B) Future Amortization Estimated amortization expense of intangible assets over the next five years is as follows: Year ended: March 31, 2017 $ 2,746,316 March 31, 2018 2,746,316 March 31, 2019 2,746,316 March 31, 2020 2,746,316 March 31, 2021 2,746,316 Thereafter 6,545,135 $ 20,276,715

Goodwill

Goodwill	9 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	NOTE 10 – 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 As of March 31, 2016 June 30, 2015 NetSol PK $ 1,166,610 $ 1,166,610 NTE 3,471,814 3,471,814 VLS 214,044 214,044 NTA 4,664,100 4,664,100 Total $ 9,516,568 $ 9,516,568 The Company tests for goodwill impairment at each reporting unit. There was no goodwill impairment for the period ended March 31, 2016.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	9 Months Ended
	Mar. 31, 2016
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	NOTE 11 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following: As of As of March 31, 2016 June 30, 2015 Accounts Payable $ 1,596,707 $ 1,514,841 Accrued Liabilities 4,219,562 3,978,435 Accrued Payroll & Taxes 196,737 291,546 Taxes Payable 205,864 22,957 Other Payable 136,089 144,782 Total $ 6,354,959 $ 5,952,561

Debts

Debts	9 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debts	NOTE 12 – DEBTS Notes payable and capital leases consisted of the following: As of March 31, 2016 Current Long-Term Name Total Maturities Maturities D&O Insurance (1 ) $ 119,583 $ 119,583 $ - HSBC Loan (2 ) 179,064 179,064 - Loan Payable Bank (3 ) 3,776,792 3,776,792 - Loan From Related Party (4 ) - - - 4,075,439 4,075,439 - Subsidiary Capital Leases (5 ) 778,432 462,779 315,653 $ 4,853,871 $ 4,538,218 $ 315,653 As of June 30, 2015 Current Long-Term Name Total Maturities Maturities D&O Insurance (1 ) $ 79,872 $ 79,872 $ - HSBC Loan (2 ) 447,161 322,349 124,812 Loan Payable Bank (3 ) 2,892,961 2,892,961 - Loan From Related Party (4 ) 129,979 129,979 - 3,549,973 3,425,161 124,812 Subsidiary Capital Leases (5 ) 833,872 471,192 362,680 $ 4,383,845 $ 3,896,353 $ 487,492 (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 0.49% as of March 31, 2016 and June 30, 2015, respectively. (2) In October 2011, the Company’s subsidiary, NTE, entered into a loan agreement with HSBC Bank to finance the acquisition of a 51% controlling interest in Virtual Leasing Services Limited. HSBC Bank guaranteed the loan up to a limit of £1,000,000, or approximately $1,436,782 for a period of 5 years with monthly payments of £18,420, or approximately $26,466. The interest rate was 4% which is 3.5% above the bank sterling base rate. The loan is securitized against a debenture comprising of fixed and floating charges over all the assets and undertakings of NTE including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future. Interest expense for the three and nine months ended March 31, 2016 was $2,243 and $11,254, respectively. Interest expense for the three and nine months ended March 31, 2015 was $7,628 and $37,578, respectively. 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, 2016, NTE was in compliance with this covenant. (3) The Company’s subsidiary, NetSol PK, has an export refinance facility with Askari Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every six months. Total facility amount is Rs. 400,000,000 or approximately $3,776,792. The interest rate for the loans was 4.5% and 7.5% at March 31, 2016 and June 30, 2015, respectively. Interest expense for the three and nine months ended March 31, 2016 was $31,669 and $109,655, respectively. Interest expense for the three and nine months ended March 31, 2015 was $31,428 and $104,203, respectively. This facility 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, 2016, NetSol PK was in compliance with this covenant. (4) In March 2014, the Company’s subsidiary, VLS, entered into a loan agreement with Investec. The loan amount was £150,000, or approximately $215,517, for a period of two years with annual payments of £75,000, or approximately $107,758. The interest rate was 3.13%. As of March 31, 2016, VLS has paid in full this facility. (5) The Company leases various fixed assets under capital lease arrangements expiring in various years through 2019. 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 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, 2016 and 2015. Following is the aggregate minimum future lease payments under capital leases as of March 31, 2016: Amount Minimum Lease Payments Due FYE 3/31/17 $ 510,192 Due FYE 3/31/18 243,353 Due FYE 3/31/19 91,772 Total Minimum Lease Payments 845,317 Interest Expense relating to future periods (66,885 ) Present Value of minimum lease payments 778,432 Less: Current portion (462,779 ) Non-Current portion $ 315,653

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity	NOTE 13 - STOCKHOLDERS’ EQUITY During the nine months ended March 31, 2016, the Company issued 36,250 shares of common stock for services rendered by officers of the Company. These shares were valued at the fair market value of $197,363. During the nine months ended March 31, 2016, the Company issued 21,750 shares of 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 $110,711. During the nine months ended March 31, 2016, the Company issued 70,750 shares of its common stock to employees pursuant to the terms of their employment agreements valued at $386,619.

Incentive and Non-Statutory Sto

Incentive and Non-Statutory Stock Option Plan	9 Months Ended
	Mar. 31, 2016
Incentive And Non-statutory Stock Option Plan
Incentive and Non-Statutory Stock Option Plan	NOTE 14 - INCENTIVE AND NON-STATUTORY STOCK OPTION PLAN Common stock purchase options and warrants consisted of the following: OPTIONS: # of shares Weighted Ave Exericse Price Weighted Average Remaining Contractual Life (in years) Aggregated Intrinsic Value Outstanding and exercisable, June 30, 2015 708,133 $ 6.84 1.22 $ 572,352 Granted 152,024 $ 4.50 Exercised (122,024 ) $ 4.40 Expired / Cancelled (11,000 ) $ 23.41 Outstanding and exercisable, March 31, 2016 727,133 $ 6.51 0.49 $ 961,544 WARRANTS: Outstanding and exercisable, June 30, 2015 163,124 $ 7.29 1.22 $ - Granted / adjusted - - Exercised - - Expired - - Outstanding and exercisable, March 31, 2016 163,124 $ 7.29 0.48 $ 11,084 The following table summarizes information about stock options and warrants outstanding and exercisable at March 31, 2016. Exercise Price Number Outstanding and Exercisable Weighted Average Remaining Contractual Life Weighted Ave Exericse Price OPTIONS: $0.10 - $9.90 664,133 0.51 $ 4.85 $10.00 - $19.90 8,000 0.33 $ 17.69 $20.00 - $29.90 55,000 0.17 $ 25.00 Totals 727,133 0.49 $ 6.51 WARRANTS: $5.00 - $7.50 163,124 0.48 $ 7.29 Totals 163,124 0.48 $ 7.29 The following table summarizes stock grants awarded as compensation: # of shares Weighted Average Grant Date Fair Value ($) Unvested, June 30, 2014 232,000 $ 3.88 Granted 113,275 $ 3.26 Vested (338,608 ) $ 3.60 Unvested, June 30, 2015 6,667 $ 6.00 Granted 859,000 $ 5.90 Vested (141,167 ) $ 5.36 Unvested, March 31, 2016 724,500 $ 6.00 For the three and nine months ended March 31, 2016, the Company recorded compensation expense of $368,674 and $694,693 respectively. For the three and nine months ended March 31, 2015, the Company recorded compensation expense of $517,068 and $1,119,721 respectively. The compensation expense related to the unvested stock grants as of March 31, 2016 was $4,350,330 which will be recognized during the fiscal years of 2016 to 2019. OPTIONS During the nine months ended March 31, 2016, the Company granted 152,024 options to employees with exercise prices of $4.14 to $4.92 per share and expiration dates of 3 to 5 months, vesting immediately. Using the Black-Scholes method to value the options, the Company recorded $145,716 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 - 0.01% - 0.02% ● Expected life – 3 months - 5 months ● Expected volatility – 41.65% - 47.89% ● Expected dividend - 0%

Contingencies

Contingencies	9 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	NOTE 15 – CONTINGENCIES As previously disclosed, on July 25, 2014, purported class action lawsuits were filed in the U.S. District Court for the Central District of California against the Company and certain of its current or former officers and/or directors, which have been consolidated under the caption Rand-Heart of New York, Inc. v. NetSol Technologies, Inc., et al. On October 27, 2015, a shareholder derivative lawsuit was filed in the California state court entitled McArthur v Ghauri, et al. In addition, on December 30, 2015, a virtually identical shareholder derivative lawsuit was filed in Nevada state court, Paulovits v. Ghauri, et al.

Operating Segments

Operating Segments	9 Months Ended
	Mar. 31, 2016
Operating Segments
Operating Segments	NOTE 16 – OPERATING SEGMENTS The Company has identified three segments for its products and services; North America, Europe and Asia-Pacific. Our reportable segments are business units located in different global regions. Each business unit provides similar products and services; license fees for leasing and asset-based software, related maintenance fees, and implementation and IT consulting services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies due to their particular regional location. The Company accounts for intra-company sales and expenses as if the sales or expenses were to third parties and eliminates them in the consolidation. The following table presents a summary of identifiable assets as of March 31, 2016 and June 30, 2015: As of As of March 31, 2016 June 30, 2015 Identifiable assets: Corporate headquarters $ 2,669,405 $ 4,896,334 North America 7,564,786 7,162,846 Europe 6,782,459 6,631,945 Asia - Pacific 72,638,531 70,271,209 Consolidated $ 89,655,181 $ 88,962,334 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, 2016 2015 2016 2015 Revenues from unaffiliated customers: North America $ 1,739,115 $ 1,317,971 $ 4,194,321 $ 3,908,308 Europe 1,514,370 1,381,156 4,692,125 4,621,071 Asia - Pacific 9,653,000 8,517,643 28,503,771 21,984,976 12,906,485 11,216,770 37,390,217 30,514,355 Revenue from affiliated customers Europe 997,474 332,617 1,984,017 864,311 Asia - Pacific 2,069,940 1,524,528 6,096,466 4,275,004 3,067,414 1,857,145 8,080,483 5,139,315 Consolidated $ 15,973,899 $ 13,073,915 $ 45,470,700 $ 35,653,670 Intercompany revenue Europe $ 132,978 $ 132,013 $ 375,471 $ 355,182 Asia - Pacific 1,330,946 1,410,655 4,390,555 3,101,919 Eliminated $ 1,463,924 $ 1,542,668 $ 4,766,026 $ 3,457,101 Net income (loss) after taxes and before non-controlling interest: Corporate headquarters $ (1,160,828 ) $ (1,709,716 ) $ (2,991,300 ) $ (2,552,756 ) North America 516,849 137,556 560,664 58,529 Europe 696,437 174,305 537,386 (829,120 ) Asia - Pacific 1,104,156 76,683 4,588,799 (1,732,981 ) Consolidated $ 1,156,614 $ (1,321,172 ) $ 2,695,549 $ (5,056,328 ) The following table presents a summary of capital expenditures for the nine months ended March 31: For the Nine Months Ended March 31, 2016 2015 Capital expenditures: Corporate headquarters $ - $ 3,439 North America 57,114 18,815 Europe 333,683 204,481 Asia - Pacific 2,133,068 2,272,579 Consolidated $ 2,523,865 $ 2,499,314

Non-Controlling Interest in Sub

Non-Controlling Interest in Subsidiary	9 Months Ended
	Mar. 31, 2016
Noncontrolling Interest [Abstract]
Non-Controlling Interest in Subsidiary	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 Interest % Non-Controlling Interest at March 31, 2016 NetSol PK 33.40 % $ 10,333,383 NetSol-Innovation 49.90 % 3,347,352 VLS, VLSH & VLSIL Combined 49.00 % 320,723 Total $ 14,001,458 SUBSIDIARY Non Controlling Interest % Non-Controlling Interest at June 30, 2015 NetSol PK 34.90 % $ 11,411,954 NetSol-Innovation 49.90 % 2,035,548 VLS, VLHS & VLSIL Combined 49.00 % 393,139 Total $ 13,840,641 NETSOL TECHNOLOGIES, LIMITED During the nine months ended March 31, 2016, employees of the NetSol PK exercised 108,000 options of common stock pursuant to employees exercising stock options and NetSol PK received cash $16,744. The Company purchased 1,374,000 shares of common stock of NetSol PK from the open market for $767,397, resulting in an overall decrease in non-controlling interest from 34.90% to 33.40%.

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Use of Estimates	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.
Concentration of Credit Risk	Concentration of Credit Risk Cash includes cash on hand and demand deposits in accounts maintained within the United States as well as in foreign countries. Certain financial instruments, which subject the Company to concentration of credit risk, consist of cash and restricted cash. The Company maintains balances at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation insured limits for the banks located in the Unites States. Balances at financial institutions within certain foreign countries are not covered by insurance. As of March 31, 2016 and June 30, 2015, the Company had uninsured deposits related to cash deposits in accounts maintained within foreign entities of approximately $8,847,577 and $8,969,443, respectively. The Company has not experienced any losses in such accounts. The Company’s operations are carried out globally. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments of each country and by the general state of the country’s economy. The Company’s operations in each foreign country are subject to specific considerations and significant risks not typically associated with companies in economically developed nations. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Also, due to the current economic conditions in China and challenges being faced by the Chinese economy, the Company may face a risk of reduction in future revenue growth and non-collection of receivables from the customers in China.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date of the new revenue standard by one year, which will make it effective for the Company in the first quarter of its fiscal year ending June 30, 2019. The Company is currently in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation — Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) (ASU 2014-12). The guidance applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. For all entities, the amendments in this update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The effective date is the same for both public business entities and all other entities. The Company is currently evaluating the impact of adopting ASU 2014-12 on the Company’s results of operations or financial condition. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). The guidance in ASU 2014-15 sets forth management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing financial statements for interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, as well as whether it is probable that management’s plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement – Extraordinary and Unusual items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01). The amendment eliminates from U.S. GAAP the concept of extraordinary items. This guidance is effective for the Company in the first quarter of fiscal 2017. Early adoption is permitted and allows the Company to apply the amendment prospectively or retrospectively. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In February 2015, FASB issued ASU No. 2015-02, (Topic 810): Amendments to the Consolidation Analysis. ASU No. 2015-02 provides amendments to respond to stakeholders’ concerns about the current accounting for consolidation of certain legal entities. Stakeholders expressed concerns that GAAP might require a reporting entity to consolidate another legal entity in situations in which the reporting entity’s contractual rights do not give it the ability to act primarily on its own behalf, the reporting entity does not hold a majority of the legal entity’s voting rights, or the reporting entity is not exposed to a majority of the legal entity’s economic benefits or obligations. ASU No. 2015-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. In April 2015, FASB issued ASU No. 2015-03, (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In April 2015, FASB issued ASU No. 2015-05, (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangements. In September 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-16, Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments.” In November 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes” (ASU 2015-17), which changes how deferred taxes are classified on the balance sheet and is effective for financial statements issued for annual periods beginning after December 15, 2016, with early adoption permitted. ASU 2015-17 requires all deferred tax assets and liabilities to be classified as non-current. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (ASU 2016-01), which requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income and updates certain presentation and disclosure requirements. ASU 2016-01 is effective beginning after December 15, 2017. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which requires lessees to recognize right-of-use assets and lease liabilities, for all leases, with the exception of short-term leases, at the commencement date of each lease. This ASU requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted. The amendments of this update should be applied using a modified retrospective approach, which requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update 2016-07, Investments- Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this standard would have on our financial condition, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” The guidance simplifies accounting for share-based payments, most notably by requiring all excess tax benefits and tax deficiencies to be recorded as income tax benefits or expense in the income statement and by allowing entities to recognize forfeitures of awards when they occur. This new guidance is effective for annual reporting periods beginning after December 15, 2016 and may be adopted prospectively or retroactively. We are currently evaluating the impact the adoption of this standard would have on our financial condition, results of operations and cash flows.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Mar. 31, 2016
Net income (loss) per common share
Components of Basic and Diluted Earnings Per Share	The components of basic and diluted earnings per share were as follows: For the three months ended March 31, 2016 For the nine months ended March 31, 2016 Net Income Shares Per Share Net Income Shares Per Share Basic income per share: Net income available to common shareholders $ 849,479 10,427,664 $ 0.08 $ 1,313,516 10,338,740 $ 0.13 Effect of dilutive securities Stock options - 212,674 - - 212,674 - Warrants - 3,141 - - 3,141 - Diluted income per share $ 849,479 10,643,479 $ 0.08 $ 1,313,516 10,554,555 $ 0.12 For the three months ended March 31, 2015 For the nine months ended March 31, 2015 Net Loss Shares Per Share Net Loss Shares Per Share Basic loss per share: Net loss available to common shareholders $ (1,636,245 ) 9,914,321 $ (0.17 ) $ (4,841,440 ) 9,573,336 $ (0.51 ) Effect of dilutive securities Stock options - - - - - - Warrants - - - - - - Diluted loss per share $ (1,636,245 ) 9,914,321 $ (0.17 ) $ (4,841,440 ) 9,573,336 $ (0.51 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potential dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive. For the Three Months For the Nine Months Ended March 31, Ended March 31, 2016 2015 2016 2015 Stock Options - 727,462 - 727,462 Warrants - 163,124 - 163,124 - 890,586 - 890,586

Other Current Assets (Tables)

Other Current Assets (Tables)	9 Months Ended
	Mar. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Current Assets	Other current assets consisted of the following: As of As of March 31, 2016 June 30, 2015 Prepaid Expenses $ 550,801 $ 452,314 Advance Income Tax 1,193,994 895,075 Employee Advances 143,163 36,816 Security Deposits 208,793 195,336 Other Receivables 322,361 322,647 Other Assets 337,509 110,002 Total $ 2,756,621 $ 2,012,190

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following: As of As of March 31, 2016 June 30, 2015 Office Furniture and Equipment $ 3,287,876 $ 3,104,375 Computer Equipment 25,728,409 25,911,422 Assets Under Capital Leases 2,090,273 1,887,767 Building 8,989,221 8,743,130 Land 2,400,421 2,451,577 Capital Work In Progress 311,153 392,243 Autos 974,070 943,873 Improvements 383,499 204,779 Subtotal 44,164,922 43,639,166 Accumulated Depreciation (20,986,572 ) (18,519,532 ) Property and Equipment, Net $ 23,178,350 $ 25,119,634
Summary of Fixed Assets Held Under Capital Leases	Following is a summary of fixed assets held under capital leases as of March 31, 2016 and June 30, 2015: As of As of March 31, 2016 June 30, 2015 Computers and Other Equipment $ 516,208 $ 590,625 Furniture and Fixtures 406,742 414,023 Vehicles 1,167,323 883,119 Total 2,090,273 1,887,767 Less: Accumulated Depreciation - Net (675,524 ) (577,215 ) $ 1,414,749 $ 1,310,552

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consisted of the following: As of As of March 31, 2016 June 30, 2015 Product Licenses - Cost $ 48,632,368 $ 48,632,368 Additions - - Effect of Translation Adjustment (3,281,529 ) (2,325,008 ) Accumulated Amortization (25,074,124 ) (23,491,893 ) Net Balance $ 20,276,715 $ 22,815,467
Estimated Amortization Expense of Intangible Assets Over Next Five Years	Estimated amortization expense of intangible assets over the next five years is as follows: Year ended: March 31, 2017 $ 2,746,316 March 31, 2018 2,746,316 March 31, 2019 2,746,316 March 31, 2020 2,746,316 March 31, 2021 2,746,316 Thereafter 6,545,135 $ 20,276,715

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Goodwill Acquired	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 As of March 31, 2016 June 30, 2015 NetSol PK $ 1,166,610 $ 1,166,610 NTE 3,471,814 3,471,814 VLS 214,044 214,044 NTA 4,664,100 4,664,100 Total $ 9,516,568 $ 9,516,568

Accounts Payable and Accrued 30

Accounts Payable and Accrued Expenses (Tables)	9 Months Ended
	Mar. 31, 2016
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consisted of the following: As of As of March 31, 2016 June 30, 2015 Accounts Payable $ 1,596,707 $ 1,514,841 Accrued Liabilities 4,219,562 3,978,435 Accrued Payroll & Taxes 196,737 291,546 Taxes Payable 205,864 22,957 Other Payable 136,089 144,782 Total $ 6,354,959 $ 5,952,561

Debts (Tables)

Debts (Tables)	9 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Components of Notes Payable and Capital Leases	Notes payable and capital leases consisted of the following: As of March 31, 2016 Current Long-Term Name Total Maturities Maturities D&O Insurance (1 ) $ 119,583 $ 119,583 $ - HSBC Loan (2 ) 179,064 179,064 - Loan Payable Bank (3 ) 3,776,792 3,776,792 - Loan From Related Party (4 ) - - - 4,075,439 4,075,439 - Subsidiary Capital Leases (5 ) 778,432 462,779 315,653 $ 4,853,871 $ 4,538,218 $ 315,653 As of June 30, 2015 Current Long-Term Name Total Maturities Maturities D&O Insurance (1 ) $ 79,872 $ 79,872 $ - HSBC Loan (2 ) 447,161 322,349 124,812 Loan Payable Bank (3 ) 2,892,961 2,892,961 - Loan From Related Party (4 ) 129,979 129,979 - 3,549,973 3,425,161 124,812 Subsidiary Capital Leases (5 ) 833,872 471,192 362,680 $ 4,383,845 $ 3,896,353 $ 487,492 (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 0.49% as of March 31, 2016 and June 30, 2015, respectively. (2) In October 2011, the Company’s subsidiary, NTE, entered into a loan agreement with HSBC Bank to finance the acquisition of a 51% controlling interest in Virtual Leasing Services Limited. HSBC Bank guaranteed the loan up to a limit of £1,000,000, or approximately $1,436,782 for a period of 5 years with monthly payments of £18,420, or approximately $26,466. The interest rate was 4% which is 3.5% above the bank sterling base rate. The loan is securitized against a debenture comprising of fixed and floating charges over all the assets and undertakings of NTE including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future. Interest expense for the three and nine months ended March 31, 2016 was $2,243 and $11,254, respectively. Interest expense for the three and nine months ended March 31, 2015 was $7,628 and $37,578, respectively. 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, 2016, NTE was in compliance with this covenant. (3) The Company’s subsidiary, NetSol PK, has an export refinance facility with Askari Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every six months. Total facility amount is Rs. 400,000,000 or approximately $3,776,792. The interest rate for the loans was 4.5% and 7.5% at March 31, 2016 and June 30, 2015, respectively. Interest expense for the three and nine months ended March 31, 2016 was $31,669 and $109,655, respectively. Interest expense for the three and nine months ended March 31, 2015 was $31,428 and $104,203, respectively. This facility 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, 2016, NetSol PK was in compliance with this covenant. (4) In March 2014, the Company’s subsidiary, VLS, entered into a loan agreement with Investec. The loan amount was £150,000, or approximately $215,517, for a period of two years with annual payments of £75,000, or approximately $107,758. The interest rate was 3.13%. As of March 31, 2016, VLS has paid in full this facility. (5) The Company leases various fixed assets under capital lease arrangements expiring in various years through 2019. 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 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, 2016 and 2015.
Schedule of Aggregate Minimum Future Lease Payments Under Capital Leases	Following is the aggregate minimum future lease payments under capital leases as of March 31, 2016: Amount Minimum Lease Payments Due FYE 3/31/17 $ 510,192 Due FYE 3/31/18 243,353 Due FYE 3/31/19 91,772 Total Minimum Lease Payments 845,317 Interest Expense relating to future periods (66,885 ) Present Value of minimum lease payments 778,432 Less: Current portion (462,779 ) Non-Current portion $ 315,653

Incentive and Non-Statutory S32

Incentive and Non-Statutory Stock Option Plan (Tables)	9 Months Ended
	Mar. 31, 2016
Incentive And Non-statutory Stock Option Plan
Schedule of Common Stock Purchase Options and Warrants	Common stock purchase options and warrants consisted of the following: OPTIONS: # of shares Weighted Ave Exericse Price Weighted Average Remaining Contractual Life (in years) Aggregated Intrinsic Value Outstanding and exercisable, June 30, 2015 708,133 $ 6.84 1.22 $ 572,352 Granted 152,024 $ 4.50 Exercised (122,024 ) $ 4.40 Expired / Cancelled (11,000 ) $ 23.41 Outstanding and exercisable, March 31, 2016 727,133 $ 6.51 0.49 $ 961,544 WARRANTS: Outstanding and exercisable, June 30, 2015 163,124 $ 7.29 1.22 $ - Granted / adjusted - - Exercised - - Expired - - Outstanding and exercisable, March 31, 2016 163,124 $ 7.29 0.48 $ 11,084
Summary of Stock Options and Warrants Outstanding and Exercisable	The following table summarizes information about stock options and warrants outstanding and exercisable at March 31, 2016. Exercise Price Number Outstanding and Exercisable Weighted Average Remaining Contractual Life Weighted Ave Exericse Price OPTIONS: $0.10 - $9.90 664,133 0.51 $ 4.85 $10.00 - $19.90 8,000 0.33 $ 17.69 $20.00 - $29.90 55,000 0.17 $ 25.00 Totals 727,133 0.49 $ 6.51 WARRANTS: $5.00 - $7.50 163,124 0.48 $ 7.29 Totals 163,124 0.48 $ 7.29
Summary of Unvested Stock Grants Awarded as Compensation	The following table summarizes stock grants awarded as compensation: # of shares Weighted Average Grant Date Fair Value ($) Unvested, June 30, 2014 232,000 $ 3.88 Granted 113,275 $ 3.26 Vested (338,608 ) $ 3.60 Unvested, June 30, 2015 6,667 $ 6.00 Granted 859,000 $ 5.90 Vested (141,167 ) $ 5.36 Unvested, March 31, 2016 724,500 $ 6.00

Operating Segments (Tables)

Operating Segments (Tables)	9 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Summary of Identifiable Assets	The following table presents a summary of identifiable assets as of March 31, 2016 and June 30, 2015: As of As of March 31, 2016 June 30, 2015 Identifiable assets: Corporate headquarters $ 2,669,405 $ 4,896,334 North America 7,564,786 7,162,846 Europe 6,782,459 6,631,945 Asia - Pacific 72,638,531 70,271,209 Consolidated $ 89,655,181 $ 88,962,334
Summary of Operating Information	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, 2016 2015 2016 2015 Revenues from unaffiliated customers: North America $ 1,739,115 $ 1,317,971 $ 4,194,321 $ 3,908,308 Europe 1,514,370 1,381,156 4,692,125 4,621,071 Asia - Pacific 9,653,000 8,517,643 28,503,771 21,984,976 12,906,485 11,216,770 37,390,217 30,514,355 Revenue from affiliated customers Europe 997,474 332,617 1,984,017 864,311 Asia - Pacific 2,069,940 1,524,528 6,096,466 4,275,004 3,067,414 1,857,145 8,080,483 5,139,315 Consolidated $ 15,973,899 $ 13,073,915 $ 45,470,700 $ 35,653,670 Intercompany revenue Europe $ 132,978 $ 132,013 $ 375,471 $ 355,182 Asia - Pacific 1,330,946 1,410,655 4,390,555 3,101,919 Eliminated $ 1,463,924 $ 1,542,668 $ 4,766,026 $ 3,457,101 Net income (loss) after taxes and before non-controlling interest: Corporate headquarters $ (1,160,828 ) $ (1,709,716 ) $ (2,991,300 ) $ (2,552,756 ) North America 516,849 137,556 560,664 58,529 Europe 696,437 174,305 537,386 (829,120 ) Asia - Pacific 1,104,156 76,683 4,588,799 (1,732,981 ) Consolidated $ 1,156,614 $ (1,321,172 ) $ 2,695,549 $ (5,056,328 )
Summary of Capital Expenditures	The following table presents a summary of capital expenditures for the nine months ended March 31: For the Nine Months Ended March 31, 2016 2015 Capital expenditures: Corporate headquarters $ - $ 3,439 North America 57,114 18,815 Europe 333,683 204,481 Asia - Pacific 2,133,068 2,272,579 Consolidated $ 2,523,865 $ 2,499,314

Non-Controlling Interest in S34

Non-Controlling Interest in Subsidiary (Tables)	9 Months Ended
	Mar. 31, 2016
Noncontrolling Interest [Abstract]
Balance of Non-Controlling Interest	The Company had non-controlling interests in several of its subsidiaries. The balance of non-controlling interest was as follows: SUBSIDIARY Non Controlling Interest % Non-Controlling Interest at March 31, 2016 NetSol PK 33.40 % $ 10,333,383 NetSol-Innovation 49.90 % 3,347,352 VLS, VLSH & VLSIL Combined 49.00 % 320,723 Total $ 14,001,458 SUBSIDIARY Non Controlling Interest % Non-Controlling Interest at June 30, 2015 NetSol PK 34.90 % $ 11,411,954 NetSol-Innovation 49.90 % 2,035,548 VLS, VLHS & VLSIL Combined 49.00 % 393,139 Total $ 13,840,641

Accounting Policies (Details Na

Accounting Policies (Details Narrative) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Uninsured deposits related to cash deposits	$ 8,847,577	$ 8,969,443

Earnings Per Share - Components

Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Net income (loss) per common share
Net income (loss) available to common shareholders, Net Income	$ 849,479	$ (1,636,245)	$ 1,313,516	$ (4,841,440)
Net income (loss) available to common shareholders, Shares	10,427,664	9,914,321	10,338,740	9,573,336
Net income (loss) available to common shareholders, Per share	$ 0.08	$ (0.17)	$ 0.13	$ (0.51)
Effect of dilutive securities Stock options	212,674		212,674
Effect of dilutive securities Warrants	3,141		3,141
Diluted income (loss) per share, Net Income	$ 849,479	$ (1,636,245)	$ 1,313,516	$ (4,841,440)
Diluted income (loss) per share, Shares	10,643,479	9,914,321	10,554,555	9,573,336
Diluted income (loss) per share, Per share	$ 0.08	$ (0.17)	$ 0.12	$ (0.51)

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Potential dilutive shares		890,586		890,586
Stock Options [Member]
Potential dilutive shares		727,462		727,462
Warrants [Member]
Potential dilutive shares		163,124		163,124

Other Comprehensive Income an38

Other Comprehensive Income and Foreign Currency (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Other Comprehensive Income And Foreign Currency [Abstract]
Accumulated other comprehensive loss	$ 18,898,747		$ 18,898,747		$ 17,167,100
Comprehensive income (loss)	$ 352,451	$ 538,893	$ 1,731,647	$ 690,532

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Services of related parties	$ 2,554,347	$ 1,813,197	$ 7,377,430	$ 4,901,792
Accounts receivable, related parties	6,467,551		6,467,551		$ 3,491,899
Net Sol Innovation [Member]
Services of related parties	2,069,940	1,524,528	6,096,466	4,275,004
Accounts receivable, related parties	6,047,908		6,047,908		3,226,733
Investec Asset Finance [Member]
Services of related parties	997,474	$ 332,617	1,984,017	$ 864,311
Accounts receivable, related parties	$ 419,643		$ 419,643		$ 265,166

Other Current Assets - Schedule

Other Current Assets - Schedule of Other Current Assets (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses	$ 550,801	$ 452,314
Advance Income Tax	1,193,994	895,075
Employee Advances	143,163	36,816
Security Deposits	208,793	195,336
Other Receivables	322,361	322,647
Other Assets	337,509	110,002
Total	$ 2,756,621	$ 2,012,190

Investment Under Cost Method (D

Investment Under Cost Method (Details Narrative)	Mar. 02, 2016USD ($)
Investments, Debt and Equity Securities [Abstract]
Percentage equity ownership interest on non-affiliated, non-public company	4.90%
Equity method investment aggregate cost on non-affiliated, non-public company	$ 555,556

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,115,544	$ 1,504,330	$ 3,242,057	$ 4,233,689
Depreciation reflected in cost of revenues	$ 796,722	$ 1,038,817	$ 2,344,039	$ 2,889,772

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Property and Equipment, Subtotal	$ 44,164,922	$ 43,639,166
Accumulated Depreciation	(20,986,572)	(18,519,532)
Property and Equipment, Net	23,178,350	25,119,634
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Subtotal	3,287,876	3,104,375
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Subtotal	25,728,409	25,911,422
Assets Under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Subtotal	2,090,273	1,887,767
Building [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Subtotal	8,989,221	8,743,130
Land [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Subtotal	2,400,421	2,451,577
Capital Work In Progress [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Subtotal	311,153	392,243
Autos [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Subtotal	974,070	943,873
Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Subtotal	$ 383,499	$ 204,779

Property and Equipment - Summar

Property and Equipment - Summary of Fixed Assets Held Under Capital Leases (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Capital Leased Assets [Line Items]
Fixed assets held under capital leases, Total	$ 2,090,273	$ 1,887,767
Less: Accumulated Depreciation - Net	(675,524)	(577,215)
Fixed assets held under capital leases, Net	1,414,749	1,310,552
Computers And Other Equipment [Member]
Capital Leased Assets [Line Items]
Fixed assets held under capital leases, Total	516,208	590,625
Furniture and Fixtures [Member]
Capital Leased Assets [Line Items]
Fixed assets held under capital leases, Total	406,742	414,023
Vehicles [Member]
Capital Leased Assets [Line Items]
Fixed assets held under capital leases, Total	$ 1,167,323	$ 883,119

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Amortization expenses of intangible assets			$ (25,074,124)		$ (23,491,893)
Product Licenses [Member]
Finite-lived unamortized amount	$ 20,276,715		$ 20,276,715
Finite-lived intangible assets, amortization over period			8 years
Amortization expenses of intangible assets	$ 686,973	$ 873,675	$ 2,075,357	$ 2,625,040

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2016	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Product Licenses - Cost - Beginning balance	$ 48,632,368	$ 48,632,368
Additions
Effect of Translation Adjustment	$ (3,281,529)	$ (2,325,008)
Accumulated Amortization	(25,074,124)	(23,491,893)
Product Licenses - Cost - Ending balance	$ 20,276,715	$ 22,815,467

Intangible Assets - Estimated A

Intangible Assets - Estimated Amortization Expense of Intangible Assets Over Next Five Years (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
March 31, 2017	$ 2,746,316
March 31, 2018	2,746,316
March 31, 2019	2,746,316
March 31, 2020	2,746,316
March 31, 2021	2,746,316
Thereafter	6,545,135
Total	$ 20,276,715	$ 22,815,467

Goodwill (Details Narrative)

Goodwill (Details Narrative)	9 Months Ended
	Mar. 31, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment

Goodwill - Summary of Goodwill

Goodwill - Summary of Goodwill Acquired (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Goodwill	$ 9,516,568	$ 9,516,568
NetSol PK [Member]
Goodwill	1,166,610	1,166,610
NTE [Member]
Goodwill	3,471,814	3,471,814
VLS [Member]
Goodwill	214,044	214,044
NTA [Member]
Goodwill	$ 4,664,100	$ 4,664,100

Accounts Payable and Accrued 50

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Payables and Accruals [Abstract]
Accounts Payable	$ 1,596,707	$ 1,514,841
Accrued Liabilities	4,219,562	3,978,435
Accrued Payroll & Taxes	196,737	291,546
Taxes Payable	205,864	22,957
Other Payable	136,089	144,782
Total	$ 6,354,959	$ 5,952,561

Debts - Components of Notes Pay

Debts - Components of Notes Payable and Capital Leases (Details) - USD ($)		Mar. 31, 2016	Jun. 30, 2015
Total		$ 4,075,439	$ 3,549,973
Current Maturities		$ 4,075,439	3,425,161
Long-Term Maturities			124,812
Subsidiary Capital Leases, Current Maturities		$ (462,779)
Subsidiary Capital Leases, Long-Term Maturities		315,653
Total		4,853,871	4,383,845
Current Maturities		4,538,218	3,896,353
Long-Term Maturities		315,653	487,492
D & O Insurance [Member]
Total	[1]	119,583	79,872
Current Maturities	[1]	$ 119,583	$ 79,872
Long-Term Maturities	[1]
HSBC Loan [Member]
Total	[2]	$ 179,064	$ 447,161
Current Maturities	[2]	$ 179,064	322,349
Long-Term Maturities	[2]		124,812
Loan Payable Bank [Member]
Total	[3]	$ 3,776,792	2,892,961
Current Maturities	[3]	$ 3,776,792	$ 2,892,961
Long-Term Maturities	[3]
Loan From Related Party [Member]
Total	[4]		$ 129,979
Current Maturities	[4]		$ 129,979
Long-Term Maturities	[4]
Subsidiary Capital Leases [Member]
Subsidiary Capital Leases, Total	[5]	$ 778,432	$ 833,872
Subsidiary Capital Leases, Current Maturities	[5]	462,779	471,192
Subsidiary Capital Leases, Long-Term Maturities	[5]	$ 315,653	$ 362,680
[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 0.49% as of March 31, 2016 and June 30, 2015, respectively.
[2]	In October 2011, the Company’s subsidiary, NTE, entered into a loan agreement with HSBC Bank to finance the acquisition of a 51% controlling interest in Virtual Leasing Services Limited. HSBC Bank guaranteed the loan up to a limit of £1,000,000, or approximately $1,436,782 for a period of 5 years with monthly payments of £18,420, or approximately $26,466. The interest rate was 4% which is 3.5% above the bank sterling base rate. The loan is securitized against a debenture comprising of fixed and floating charges over all the assets and undertakings of NTE including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future. Interest expense for the three and nine months ended March 31, 2016 was $2,243 and $11,254, respectively. Interest expense for the three and nine months ended March 31, 2015 was $7,628 and $37,578, respectively. 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, 2016, NTE was in compliance with this covenant.
[3]	The Company’s subsidiary, NetSol PK, has an export refinance facility with Askari Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every six months. Total facility amount is Rs. 400,000,000 or approximately $3,776,792. The interest rate for the loans was 4.5% and 7.5% at March 31, 2016 and June 30, 2015, respectively. Interest expense for the three and nine months ended March 31, 2016 was $31,669 and $109,655, respectively. Interest expense for the three and nine months ended March 31, 2015 was $31,428 and $104,203, respectively. This facility 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, 2016, NetSol PK was in compliance with this covenant.
[4]	In March 2014, the Company’s subsidiary, VLS, entered into a loan agreement with Investec. The loan amount was £150,000, or approximately $215,517, for a period of two years with annual payments of £75,000, or approximately $107,758. The interest rate was 3.13%. As of March 31, 2016, VLS has paid in full this facility.
[5]	The Company leases various fixed assets under capital lease arrangements expiring in various years through 2019. 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 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, 2016 and 2015.

Debts - Components of Notes P52

Debts - Components of Notes Payable and Capital Leases (Details) (Parenthetical)	1 Months Ended			3 Months Ended		9 Months Ended
	Mar. 31, 2014USD ($)	Oct. 31, 2011USD ($)	Oct. 31, 2011GBP (£)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 31, 2016GBP (£)	Mar. 31, 2016INR (₨)	Jun. 30, 2015	Mar. 31, 2014GBP (£)	Oct. 31, 2011GBP (£)
Capital Lease Arrangements [Member]
Lease arrangement expiration						years through 2019
NTE [Member]
Percentage of debt service cost						150.00%
GBP [Member] | NTE [Member]
Tangible adjusted net | £								£ 600,000
HSBC Bank [Member] | NTE [Member]
Business acquisition, percentage of voting interests acquired		51.00%										51.00%
Line of credit facility, maximum borrowing capacity		$ 1,436,782
Debt instrument maturity term		5 years	5 years
Line of credit facility, periodic payment		$ 26,466
Line of credit variable interest rate		4.00%	4.00%
Interest expense				$ 2,243	$ 7,628	$ 11,254	$ 37,578
HSBC Bank [Member] | NTE [Member] | GBP [Member]
Line of credit facility, maximum borrowing capacity | £												£ 1,000,000
Line of credit facility, periodic payment | £			£ 18,420
Debt instrument, base rate		3.50%	3.50%
Asakari Bank Limited [Member] | NetSol PK [Member]
Interest expense				31,669	$ 31,428	109,655	$ 104,203
Line of credit				$ 3,776,792		$ 3,776,792
Debt instrument, interest rate				4.50%		4.50%		4.50%	4.50%	7.50%
Long term debt covenant description						long term debt equity ratio of 60:40 and the current ratio of 1:1.
Asakari Bank Limited [Member] | NetSol PK [Member] | INR [Member]
Line of credit | ₨									₨ 400,000,000
Investec [Member] | VLS [Member]
Line of credit	$ 215,517
Debt instrument, interest rate	3.13%										3.13%
Debt instrument, term	2 years
Debt instrument annual payment	$ 107,758
Investec [Member] | VLS [Member] | GBP [Member]
Line of credit | £											£ 150,000
Debt instrument annual payment | £											£ 75,000
Directors' and Officers And Errors and Omissions Liability Insurance [Member]
Line of credit facility interest rate				0.49%		0.49%		0.49%	0.49%	0.49%

Debts - Schedule of Aggregate M

Debts - Schedule of Aggregate Minimum Future Lease Payments under Capital Leases (Details)	Mar. 31, 2016USD ($)
Debt Disclosure [Abstract]
Due FYE 3/31/17	$ 510,192
Due FYE 3/31/18	243,353
Due FYE 3/31/19	91,772
Total Minimum Lease Payments	845,317
Interest Expense relating to future periods	(66,885)
Present Value of minimum lease payments	778,432
Less: Current portion	(462,779)
Non-Current portion	$ 315,653

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative)	9 Months Ended
	Mar. 31, 2016USD ($)shares
Officers and Employees [Member]
Issuance of common stock shares for services rendered | shares	36,250
Issuance of common stock value for services rendered | $	$ 197,363
Board of Directors [Member]
Issuance of common stock shares for services rendered | shares	21,750
Issuance of common stock value for services rendered | $	$ 110,711
Employees [Member] | Employment Agreements [Member]
Issuance of common stock shares for services rendered | shares	70,750
Issuance of common stock value for services rendered | $	$ 386,619

Incentive and Non-Statutory S55

Incentive and Non-Statutory Stock Option Plan (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Compensation expense	$ 368,674	$ 517,068	$ 694,693	$ 1,119,721
Compensation expense related to unvested Stock grants	$ 4,350,330		4,350,330
Employees [Member]
Compensation expense			$ 145,716
Number of stock options granted			152,024
Fair value assumption of risk-free interest rate, minimum			0.01%
Fair value assumption of risk-free interest rate, maximum			0.02%
Fair value assumption of expected volatility, minimum			41.65%
Fair value assumption of expected volatility, maximum			47.89%
Fair value assumption of expected dividend			0.00%
Employees [Member] | Minimum [Member]
Stock option exercise price per share	$ 4.14		$ 4.14
Stock option expiration date			3 months
Fair value assumption of expected life			3 months
Employees [Member] | Maximum [Member]
Stock option exercise price per share	$ 4.92		$ 4.92
Stock option expiration date			5 months
Fair value assumption of expected life			5 months

Incentive and Non-Statutory S56

Incentive and Non-Statutory Stock Option Plan - Schedule of Common Stock Purchase Options and Warrants (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2016	Jun. 30, 2015
Warrants [Member]
Number of shares, Outstanding and Exercisable Beginning	163,124
Number of shares, Granted
Number of shares, Exercised
Number of shares, Expired / Cancelled
Number of shares, Outstanding and Exercisable Ending	163,124	163,124
Weighted Average Exercise Price, Outstanding and Exercisable Beginning	$ 7.29
Weighted Average Exercise Price, Granted
Weighted Average Exercise Price, Exercised
Weighted Average Exercise Price, Expired / Cancelled
Weighted Average Exercise Price, Outstanding and Exercisable Ending	$ 7.29	$ 7.29
Weighted Average Remaining Contractual Life, Outstanding and Exercisable	5 months 23 days	1 year 2 months 19 days
Aggregated Intrinsic Value, Outstanding and Exercisable
Aggregated Intrinsic Value, Outstanding and Exercisable	$ 11,084
Options [Member]
Number of shares, Outstanding and Exercisable Beginning	708,133
Number of shares, Granted	152,024
Number of shares, Exercised	(122,024)
Number of shares, Expired / Cancelled	(11,000)
Number of shares, Outstanding and Exercisable Ending	727,133	708,133
Weighted Average Exercise Price, Outstanding and Exercisable Beginning	$ 6.84
Weighted Average Exercise Price, Granted	4.50
Weighted Average Exercise Price, Exercised	4.40
Weighted Average Exercise Price, Expired / Cancelled	23.41
Weighted Average Exercise Price, Outstanding and Exercisable Ending	$ 6.51	$ 6.84
Weighted Average Remaining Contractual Life, Outstanding and Exercisable	5 months 27 days	1 year 2 months 19 days
Aggregated Intrinsic Value, Outstanding and Exercisable	$ 572,352
Aggregated Intrinsic Value, Outstanding and Exercisable	$ 961,544	$ 572,352

Incentive and Non-Statutory S57

Incentive and Non-Statutory Stock Option Plan - Summary of Stock Options and Warrants Outstanding and Exercisable (Details) - $ / shares	9 Months Ended	12 Months Ended
	Mar. 31, 2016	Jun. 30, 2015
Warrants [Member]
Number Outstanding and Exercisable, shares	163,124	163,124
Weighted Average Remaining Contractual Life	5 months 23 days	1 year 2 months 19 days
Weighted Ave Exercise Price	$ 7.29
Options [Member]
Number Outstanding and Exercisable, shares	727,133	708,133
Weighted Average Remaining Contractual Life	5 months 27 days	1 year 2 months 19 days
Weighted Ave Exercise Price	$ 6.51
Price Range One [Member] | Warrants [Member]
Exercise Price, Lower	5
Exercise Price, Upper	$ 7.50
Number Outstanding and Exercisable, shares	163,124
Weighted Average Remaining Contractual Life	5 months 23 days
Weighted Ave Exercise Price	$ 7.29
Price Range One [Member] | Options [Member]
Exercise Price, Lower	0.10
Exercise Price, Upper	$ 9.90
Number Outstanding and Exercisable, shares	664,133
Weighted Average Remaining Contractual Life	6 months 4 days
Weighted Ave Exercise Price	$ 4.85
Price Range Two [Member] | Options [Member]
Exercise Price, Lower	10
Exercise Price, Upper	$ 19.90
Number Outstanding and Exercisable, shares	8,000
Weighted Average Remaining Contractual Life	3 months 29 days
Weighted Ave Exercise Price	$ 17.69
Price Range Three [Member] | Options [Member]
Exercise Price, Lower	20
Exercise Price, Upper	$ 29.90
Number Outstanding and Exercisable, shares	55,000
Weighted Average Remaining Contractual Life	2 months 1 day
Weighted Ave Exercise Price	$ 25

Incentive and Non-Statutory S58

Incentive and Non-Statutory Stock Option Plan - Summary of Unvested Stock Grants Awarded as Compensation (Details) - $ / shares	9 Months Ended	12 Months Ended
	Mar. 31, 2016	Jun. 30, 2015
Incentive And Non-statutory Stock Option Plan
Number of shares, Unvested beginning balance	6,667	232,000
Number of shares, Granted	859,000	113,275
Number of shares, Vested	(141,167)	(338,608)
Number of shares, Unvested ending balance	724,500	6,667
Weighted Average Grant Date Fair Value, Unvested beginning balance	$ 6	$ 3.88
Weighted Average Grant Date Fair Value, Granted	5.90	3.26
Weighted Average Grant Date Fair Value, Vested	5.36	3.60
Weighted Average Grant Date Fair Value, Unvested ending balance	$ 6	$ 6

Operating Segments (Details Nar

Operating Segments (Details Narrative)	9 Months Ended
	Mar. 31, 2016Segment
Segment Reporting [Abstract]
Number of Operating Segments	3

Operating Segments - Summary of

Operating Segments - Summary of Identifiable Assets (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Identifiable Assets	$ 89,655,181	$ 88,962,334
North America [Member]
Identifiable Assets	7,564,786	7,162,846
Europe [Member]
Identifiable Assets	6,782,459	6,631,945
Asia - Pacific [Member]
Identifiable Assets	72,638,531	70,271,209
Corporate Headquaters [Member]
Identifiable Assets	$ 2,669,405	$ 4,896,334

Operating Segments - Summary 61

Operating Segments - Summary of Operating Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenues	$ 15,973,899	$ 13,073,915	$ 45,470,700	$ 35,653,670
Net income (loss) after taxes and before non-controlling interest	1,156,614	(1,321,172)	2,695,549	(5,056,328)
Intercompany Revenue [Member]
Revenues	1,463,924	1,542,668	4,766,026	3,457,101
North America [Member]
Net income (loss) after taxes and before non-controlling interest	516,849	137,556	560,664	58,529
Europe [Member]
Net income (loss) after taxes and before non-controlling interest	696,437	174,305	537,386	(829,120)
Europe [Member] | Intercompany Revenue [Member]
Revenues	132,978	132,013	375,471	355,182
Asia - Pacific [Member]
Net income (loss) after taxes and before non-controlling interest	1,104,156	76,683	4,588,799	(1,732,981)
Asia - Pacific [Member] | Intercompany Revenue [Member]
Revenues	1,330,946	1,410,655	4,390,555	3,101,919
Corporate Headquaters [Member]
Net income (loss) after taxes and before non-controlling interest	(1,160,828)	(1,709,716)	(2,991,300)	(2,552,756)
Unaffiliated Customers [Member]
Revenues	12,906,485	11,216,770	37,390,217	30,514,355
Unaffiliated Customers [Member] | North America [Member]
Revenues	1,739,115	1,317,971	4,194,321	3,908,308
Unaffiliated Customers [Member] | Europe [Member]
Revenues	1,514,370	1,381,156	4,692,125	4,621,071
Unaffiliated Customers [Member] | Asia - Pacific [Member]
Revenues	9,653,000	8,517,643	28,503,771	21,984,976
Affiliated Customers [Member]
Revenues	3,067,414	1,857,145	8,080,483	5,139,315
Affiliated Customers [Member] | Europe [Member]
Revenues	997,474	332,617	1,984,017	864,311
Affiliated Customers [Member] | Asia - Pacific [Member]
Revenues	$ 2,069,940	$ 1,524,528	$ 6,096,466	$ 4,275,004

Operating Segments - Summary 62

Operating Segments - Summary of Capital Expenditures (Details) - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Capital expenditures	$ 2,523,865	$ 2,499,314
Corporate Headquaters [Member]
Capital expenditures		3,439
North America [Member]
Capital expenditures	$ 57,114	18,815
Europe [Member]
Capital expenditures	333,683	204,481
Asia - Pacific [Member]
Capital expenditures	$ 2,133,068	$ 2,272,579

Non-Controlling Interest in S63

Non-Controlling Interest in Subsidiary (Details Narrative) - NetSol PK [Member] - USD ($)	9 Months Ended
	Mar. 31, 2016	Jun. 30, 2015
Stock option exercising stock	108,000
Stock option exercising stock cash	$ 16,744
Company purchased shares of common stock	1,374,000
Shares open market value	$ 767,397
Non-Controlling Interest, Percentage	33.40%	34.90%
Maximum [Member]
Non-Controlling Interest, Percentage	34.90%
Minimum [Member]
Non-Controlling Interest, Percentage	33.40%

Non-Controlling Interest in S64

Non-Controlling Interest in Subsidiary - Balance of Non-Controlling Interest (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Non-Controlling Interest	$ 14,001,458	$ 13,840,641
NetSol PK [Member]
Non-Controlling Interest, Percentage	33.40%	34.90%
Non-Controlling Interest	$ 10,333,383	$ 11,411,954
Net Sol Innovation [Member]
Non-Controlling Interest, Percentage	49.90%	49.90%
Non-Controlling Interest	$ 3,347,352	$ 2,035,548
VLS, VLHS And VLSIL Combined [Member]
Non-Controlling Interest, Percentage	49.00%	49.00%
Non-Controlling Interest	$ 320,723	$ 393,139