v3.26.3
SEGMENT INFORMATION AND GEOGRAPHIC AREAS (Tables)
 12 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SCHEDULE OF FINANCIAL INFORMATION BY REPORTABLE SEGMENT

The following tables present financial information by reportable segment for the year ended June 30, 2026:

 

SCHEDULE OF FINANCIAL INFORMATION BY REPORTABLE SEGMENT

   North America   Europe   Asia - Pacific   Total 
   For the Year Ended 
   June 30, 2026 
   North America   Europe   Asia - Pacific   Total 
Revenues                
License  $-   $181,970   $4,772,408   $4,954,378 
Subscription and support   5,486,750    5,462,370    24,850,722    35,799,842 
Services   3,568,641    8,400,105    21,648,414    33,617,160 
Intersegment revenues   -    -    3,774,495    3,774,495 
Total revenue from reportable segments  $9,055,391   $14,044,445   $55,046,039   $78,145,875 
Elimination of intersegment revenues   -     -     -     (3,774,495)
Total consolidated revenues                 $74,371,380 
                     
Revenues from reportable segments  $9,055,391   $14,044,445   $55,046,039   $78,145,875 
                     
Salaries and consultants   1,685,067    4,021,044    19,991,225    25,697,336 
Travel   389,367    328,244    2,092,081    2,809,692 
Depreciation   -    -    783,692    783,692 
Other (a)   2,167,973    3,135,682    4,404,157    9,707,812 
Gross Profit   4,812,984    6,559,475    27,774,884    39,147,343 
                     
Selling and marketing   2,721,440    1,522,634    7,072,530    11,316,604 
Depreciation   7,360    174,083    273,286    454,729 
General and administrative   957,047    3,487,884    9,907,783    14,352,714 
Income (loss) from operations - reportable segments  $1,127,137   $1,374,874   $10,521,285   $13,023,296 
                     
Reconciliation:                    
Income (loss) from operations - reportable segments                 $13,023,296 
Corporate operating expenses                  (6,076,631)
Interest expense                  (605,619)
Interest income                  1,071,472 
Gain (loss) on foreign currency exchange transactions                  (389,814)
Other income (expense)                  203,175 
Net income (loss) before income taxes                 $7,225,879 

 

Segment assets:  North America   Europe   Asia - Pacific   Total 
   As of 
   June 30, 2026 
Segment assets:  North America   Europe   Asia - Pacific   Total 
Cash  $399,011   $1,539,968   $24,997,445   $26,936,424 
Accounts receivable, net of allowance   930,051    1,205,268    8,151,023    10,286,342 
Contract assets, net of allowance   608,239    4,316,555    13,782,788    18,707,582 
Other segment assets (b)   162,451    1,146,259    10,767,095    12,075,805 
Total segment assets  $2,099,752   $8,208,050   $57,698,351   $68,006,153 
                     
Asset Reconciliation                    
Total assets for reportable segments                  68,006,153 
Corporate assets                  530,372 
Goodwill not allocated to segments                  9,302,524 
Consolidated total                 $77,839,049 

 

   North America   Europe   Asia - Pacific   Total 
   For the Year ended June 30, 2026 
   North America   Europe   Asia - Pacific   Total 
                     
Expenditures for property, plant and equipment  $21,100   $26,445   $1,959,569   $2,007,114 

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Consolidated Financial Statements

June 30, 2026 and 2025

 

The following tables present financial information by reportable segment for the year ended June 30, 2025:

 

   North America   Europe   Asia - Pacific   Total 
   For the Year Ended 
   June 30, 2025 
   North America   Europe   Asia - Pacific   Total 
Revenues                
License  $-   $111,377   $487,256   $598,633 
Subscription and support   5,603,900    4,560,260    22,770,488    32,934,648 
Services   6,399,927    9,972,363    16,182,658    32,554,948 
Intersegment revenues             7,000,458    7,000,458 
Total revenue from reportable segments  $12,003,827   $14,644,000   $46,440,860   $73,088,687 
Elimination of intersegment revenues   -     -     -     (7,000,458)
Total consolidated revenues                 $66,088,229 
                     
Revenues from reportable segments  $12,003,827   $14,644,000   $46,440,860   $73,088,687 
                     
Salaries and consultants   2,074,573    4,607,703    19,115,189    25,797,465 
Travel   277,680    162,193    1,623,638    2,063,511 
Depreciation   -    -    952,331    952,331 
Other (a)   3,497,607    4,836,247    3,366,994    11,700,848 
Gross Profit   6,153,967    5,037,857    21,382,708    32,574,532 
                     
Selling and marketing   2,103,890    1,341,023    6,278,262    9,723,175 
Depreciation   3,167    186,927    321,358    511,452 
General and administrative   755,194    4,059,517    8,502,694    13,317,405 
Income (loss) from operations - reportable segments  $3,291,716   $(549,610)  $6,280,394   $9,022,500 
                     
Reconciliation:                    
Income (loss) from operations - reportable segments                 $9,022,500 
Corporate operating expenses                  (5,520,782)
Interest expense                  (871,355)
Interest income                  1,871,040 
Gain (loss) on foreign currency exchange transactions                  1,301,613 
Other income (expense)                  244,241 
Net income (loss) before income taxes                 $6,047,257 

 

Segment assets:  North America   Europe   Asia - Pacific   Total 
   As of 
   June 30, 2025 
Segment assets:  North America   Europe   Asia - Pacific   Total 
Cash  $387,955   $1,138,048   $15,248,031   $16,774,034 
Accounts receivable, net of allowance   581,872    1,084,418    5,861,282    7,527,572 
Contract assets, net of allowance   1,967,757    3,178,780    13,987,848    19,134,385 
Other segment assets (b)   243,550    1,580,534    7,066,725    8,890,809 
Total segment assets  $3,181,134   $6,981,780   $42,163,886   $52,326,800 
                     
Asset Reconciliation                    
Total assets for reportable segments                 $52,326,800 
Corporate assets                  811,785 
Goodwill not allocated to segments                  9,302,524 
Consolidated total                 $62,441,109 

 

   North America   Europe   Asia - Pacific   Total 
   For the year ended June 30, 2025 
   North America   Europe   Asia - Pacific   Total 
                     
Expenditures for property, plant and equipment  $17,332   $9,929   $1,355,509   $1,382,770 

 

(a)Other costs of goods sold include computer costs, third-party hardware and software costs, repair and maintenance, insurance, utilities, and communication expenses.

 

(b)Other assets include property and equipment, right of use of assets, advances, deposits, and prepayments.
SCHEDULE OF GEOGRAPHIC INFORMATION

The following table presents geographic information for revenues and long-lived assets for the years ended June 30 2026 and 2025.

 

   June 30, 2026   June 30, 2025 
   Revenue   Long-lived Assets   Revenue   Long-lived Assets 
                 
China  $19,210,603   $963,696   $17,043,193   $108,837 
Thailand   5,427,978    216,790    2,745,299    585,401 
USA   7,912,604    171,348    10,763,285    175,247 
UK   14,044,445    681,768    14,644,000    998,465 
Pakistan & India   3,127,103    9,205,752    2,292,058    4,514,487 
Australia & New Zealand   14,653,482    9,082    8,609,997    5,923 
Mexico   1,142,788    -    1,240,542    - 
Indonesia   3,143,602    -    4,138,350    - 
South Africa   729,724    -    814,817    - 
South Korea   1,820,581    -    1,506,456    - 
Other Countries   3,158,470    426,913    2,290,232    430,622 
Total  $74,371,380   $11,675,349   $66,088,229   $6,818,982 
SCHEDULE OF GEOGRAPHIC INFORMATION TOTAL REVENUES

Disclosed in the table below is the geographic information of total revenues by country for the years ended June 30, 2026 and 2025.

 

                                                 
   Revenues 2026 
   Total   China   Thailand   USA   UK  

Pakistan & India

  

Australia
& New
Zealand

   Mexico   Indonesia   South Africa   South Korea   Other Countries 
                                                 
North America:  $9,055,392   $-   $-   $7,912,604   $-   $-   $-   $1,142,788   $-   $-   $-   $- 
Europe:   14,044,445    -    -    -    14,044,445    -    -    -    -    -    -    - 
Asia-Pacific:   51,271,543    19,210,603    5,427,978    -    -    3,127,103    14,653,482    -    3,143,602    729,724    1,820,581    3,158,470 
                                                             
Total  $74,371,380   $19,210,603   $5,427,978   $7,912,604   $14,044,445   $3,127,103   $14,653,482   $1,142,788   $3,143,602   $729,724   $1,820,581   $3,158,470 

 

                                                 
   Revenues 2025 
   Total   China   Thailand   USA   UK  

Pakistan & India

  

Australia
& New Zealand

   Mexico   Indonesia   South Africa   South Korea   Other Countries 
                                                 
North America:  $12,003,827   $-   $-   $10,763,285   $-   $-   $-   $1,240,542   $-   $-   $-   $- 
Europe:   14,644,000    -    -    -    14,644,000    -    -    -    -    -    -    - 
Asia-Pacific:   39,440,402    17,043,193    2,745,299    -    -    2,292,058    8,609,997    -    4,138,350    814,817    1,506,456    2,290,232 
Total  $66,088,229   $17,043,193   $2,745,299   $10,763,285   $14,644,000   $2,292,058   $8,609,997   $1,240,542   $4,138,350   $814,817   $1,506,456   $2,290,232