- Despite COVID-19 Related Challenges, Topline Improved Sequentially, Driven by Notable New Contract Signings, Ongoing Implementations Globally, Increased Demand within Existing Customer Base
- Steady, Double-Digit, Subscription and Support Revenue Growth from $5.1 Million to $5.7 Million Leading to $23+ Million Run Rate Over Coming Twelve Months with Opportunities for Upside
- Recurring Revenue Growth Accelerated by Further Cloud Adoption and Major Go Live Events as Customers Continue to Automate And Transform Business Processes In Response to Pandemic
- Long-Term Growth Outlook Aided by Ongoing Financial and Operational Improvement Through the Balance of Fiscal 2021, Partnership Pilots Through Otoz Innovation Lab, Record Cash Position of $32 Million to Fund Rebooted Global Sales and Marketing Activities
CALABASAS, Calif., Feb. 16, 2021 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK ), a global business services and enterprise application solutions provider, reported results for the fiscal second quarter ended December 31, 2020.
Fiscal Second Quarter 2021 and Recent Operational Highlights
- Appointed Co-Founder, President of Global Sales and CEO of Otoz, Naeem Ghauri to serve as President of NETSOL Technologies, Inc., a newly created role that is responsible for P&L for all subsidiaries as well as developing a cohesive strategy to grow the company’s SaaS revenues and cloud offerings through digital product development and new complementary solutions to existing core offerings.
- Secured an agreement with an existing tier one finance customer in China to upgrade to the NFS Ascent ® Retail and Wholesale platforms as part of a contract expected to generate $9.0 million over the multi-year life of the agreement.
- Successfully implemented the NFS Ascent ® Retail Platform, including the Company’s proprietary Loan Origination System (LOS) and Contract Management System (CMS) for a tier-one German auto captive finance company in China in the second phase of a previously announced $30 million contract.
- Announced the successful implementation of the NFS Ascent ® Retail Platform with Allica, a rapidly growing U.K. bank serving small and medium-sized enterprises, marking the first “Go Live” of a cloud-based NFS Ascent ® Retail client in the region.
- Regarding previously announced 12-country, $110 million contract with German auto manufacturing giant, the Company made continued progress with respect to additional NFS Ascent ® implementations. The Company had a successful October 2020 Go Live event in Thailand for its Retail Platform and is currently underway on implementation for the same offering in New Zealand.
- Signed an agreement with a renowned financial services company in the U.S. to implement the Company’s North American LeasePak Cloud offering, which is expected to generate approximately $1.0 million over the multi-year life of the contract.
- Subscription (SaaS and Cloud) and support revenues reached $5.7 million, a 12% increase over the prior year and a $23+ million run rate projected over the coming twelve months with opportunities for upside.
- Generated nearly $1.5 million by successfully implementing change requests from various customers across multiple regions during the fiscal second quarter.
- Introduced WRLD3D’s NXT: a COVID-aware smart workplace platform to support companies’ return to work safely.
- Otoz nearing completion of a pilot launch for a U.S. tier one automotive company with expected Go Live in the next few months. Backlog of potential new customers continues to grow.
Fiscal Second Quarter 2021 Financial Results
Total net revenues for the second quarter of fiscal 2021 were $13.1 million, compared with $15.7 million in the prior year period. The decrease in total net revenues was primarily due to a decrease in total services revenues of $5.6 million, which was offset by an increase in total license fees of $2.4 million and an increase in total subscription and support revenues of $620,000.
- Total license fees were $2.6 million, compared with $177,000 in the prior year period.
- Total subscription (SaaS and Cloud) and support revenues were $5.7 million, compared with $5.1 million in the prior year period.
- Total services revenues were $4.8 million, compared with $10.4 million in the prior year period.
Gross profit for the second quarter of fiscal 2021 was $6.0 million (or 46.0% of net revenues), compared to $7.8 million (or 49.7% of net revenues) in the second quarter of fiscal 2020. The decreases in gross profit and gross profit as a percentage of revenue were primarily due to a decrease in net revenue, offset by a decrease in cost of sales. The decrease in cost of sales was primarily due to a decrease in travel expense of $1.4 million, which was offset by an increase in salaries and consultant fees of $669,000.
Operating expenses for the second quarter of fiscal 2021 decreased 16.1% to $6.0 million (or 45.4% of net revenues) from $7.1 million (or 45.2% of net revenues) for the second quarter of fiscal 2020. The decrease in operating expenses was primarily due to decreases in selling and marketing expenses, professional services, research and development and general and administrative expenses.
GAAP net loss attributable to NETSOL for the second quarter of fiscal 2021 totaled $(242,000) or $(0.02) per diluted share, compared with GAAP net income of $586,000 or $0.05 per diluted share in the second quarter of fiscal 2020. GAAP net loss attributable to NETSOL included a $14,000 gain on foreign currency exchange transactions in the second quarter of fiscal 2021, which was a decrease from a gain of $61,000 in the prior year period.
Non-GAAP adjusted EBITDA for the second quarter of fiscal 2021 totaled $617,000 or $0.05 per diluted share, compared with non-GAAP adjusted EBITDA of $1.6 million or $0.13 per diluted share in the second quarter of fiscal 2020 (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).
At December 31, 2020, cash and cash equivalents were $32.0 million, an increase from $20.2 million at June 30, 2020.
Stock Repurchase Program
On July 30, 2020, NETSOL’s Board of Directors approved a stock repurchase program that authorized potential repurchases of up to $2 million of its common stock over a six-month period. After the expiry of the original program, the Company’s Board of Directors approved the extension of the repurchase program through June 28, 2021. Under the program, the Company may repurchase its common stock in the open market from time-to-time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions and federal and state laws governing such transactions. NETSOL expects to fund the repurchase with its existing cash balance and cash generated from operations.
As of December 31, 2020, the Company had repurchased 446,996 shares of its common stock at an aggregate value of $1,392,671.
Management Commentary
"Fiscal Q2 yielded incrementally improved results for our global business as we saw the early stages of return to work thanks to the initial rollout of COVID-19 vaccine treatments at the end of 2020,” said NETSOL Co-Founder, Chairman and Chief Executive Officer Najeeb Ghauri. “We have continued to lean into our technology strengths and are still operating remotely for the most part without missing a step. During the period we expanded our SaaS-based footprint through a multi-million-dollar upgrade as well as several large-scale implementations, driving our recurring revenue base close to $6 million for the quarter, nearly $11 million year to date. We also recorded nearly $1.5 million in change requests from current customers, another encouraging data point for the improving health of the industries we serve and the economy as a whole.
“Operationally, our recent appointment of Naeem Ghauri to President of NTI should allow us to accelerate progress within our core initiatives, namely driving more consistent topline growth through an increased focused on high-margin, SaaS opportunities which should also lead to sustained profitability. While the broader market cautiously begins to pick up in waves, we are continuing to execute against our near-term pipeline and current implementation schedule. We are being conservative in our cost structures, managing the business as owners, and will opportunistically look to deploy additional resources to high-value areas such as our Otoz Innovation Lab. We remain optimistic for the remainder of the year and even more bullish on the years ahead.”
Otoz Update
“Otoz is nearing completion of a pilot launch to fully digitize a U.S. tier one automotive company,” said Naeem Ghauri, President of NETSOL Technologies, Inc. and Otoz CEO. “This project has allowed us to create an amazing digital auto buying experience through a state-of-the-art app. Overall, this pilot is a door opener for Otoz to penetrate the rapidly growing digital mobility platform movement. Based on the sizeable prospect pipeline we have today, we are well on track to continue grow the Otoz client list by at least another few tier one mobility customers over the next twelve months.”
Conference Call
NETSOL Technologies management will hold a conference call today (February 16, 2021) at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these financial results. A question and answer session will follow management's presentation.
U.S. dial-in: 1-877-407-0789
International dial-in: 1-201-689-8562
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.
The conference call will be broadcasted live and available for replay here and via the Investor Relations section of NETSOL’s website .
A replay of the conference call will be available after 12:00 p.m. Eastern time on the same day through March 2, 2021.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13715527
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1300 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent ® – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete finance and leasing lifecycle.
About Otoz
Otoz provides business-to-business, white-label technology solutions for new mobility. Our suite of agile and customizable mobility solutions ranges from car sharing and subscription products to AI-enabled chatbots, allowing businesses to engage consumers and facilitate the complete transaction lifecycle intelligently and digitally. Otoz technologies empower automotive companies and start-ups to launch new mobility models quickly and efficiently. The technology Otoz has developed is cloud-native and supported by artificial intelligence (AI), machine learning (ML), internet of things (IoT) and blockchain. Our technology drives utilization, while supporting robust and efficient operations.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operating results, including statements regarding the Company that are subject to certain risks and uncertainties such as the effect of stay at home orders and social distancing imposed by COVID-19 and its resultant impact on our financials and the world economy that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance, as well as the delay in recovery or a prolonged economic downturn that effects our Company, our customers and the world economy. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Use of Non-GAAP Financial Measures
The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release.
Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Investor Relations
1-949-574-3860
investors@netsoltech.com
NETSOL Technologies, Inc. and Subsidiaries
Schedule 1: Consolidated Balance Sheets
|
|
|
As of |
|
As of |
|
ASSETS |
December 31, 2020 |
|
June 30, 2020 |
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
32,003,647 |
|
|
$ |
20,166,830 |
|
|
Accounts receivable, net of allowance of $308,236 and $435,611 |
|
5,213,604 |
|
|
|
10,131,752 |
|
|
Accounts receivable - related party, net of allowance of $1,373,099 and $90,594 |
|
- |
|
|
|
1,282,505 |
|
|
Revenues in excess of billings, net of allowance of $153,650 and $188,914 |
|
13,290,010 |
|
|
|
17,198,281 |
|
|
Revenues in excess of billings - related party, net of allowance of $8,163 and $0 |
|
- |
|
|
|
8,163 |
|
|
Other current assets, net of allowance of $1,243,633 and $0 |
|
2,395,985 |
|
|
|
3,108,180 |
|
|
|
Total current assets |
|
52,903,246 |
|
|
|
51,895,711 |
|
| Revenues in excess of billings, net - long term |
|
356,059 |
|
|
|
1,300,289 |
|
| Convertible note receivable - related party, net of allowance of $4,250,000 and $0 |
|
- |
|
|
|
4,250,000 |
|
| Property and equipment, net |
|
12,209,500 |
|
|
|
11,329,631 |
|
| Right of use of assets - operating leases |
|
1,937,907 |
|
|
|
2,360,129 |
|
| Long term investment |
|
3,734,907 |
|
|
|
2,387,692 |
|
| Other assets |
|
47,190 |
|
|
|
41,992 |
|
| Intangible assets, net |
|
4,753,543 |
|
|
|
5,391,077 |
|
| Goodwill |
|
9,516,568 |
|
|
|
9,516,568 |
|
|
|
Total assets |
$ |
85,458,920 |
|
|
$ |
88,473,089 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable and accrued expenses |
$ |
6,327,192 |
|
|
$ |
5,680,837 |
|
|
Current portion of loans and obligations under finance leases |
|
10,383,572 |
|
|
|
9,139,561 |
|
|
Current portion of operating lease obligations |
|
1,169,960 |
|
|
|
1,111,912 |
|
|
Unearned revenues |
|
3,753,781 |
|
|
|
4,095,472 |
|
|
Common stock to be issued |
|
88,324 |
|
|
|
88,324 |
|
|
|
Total current liabilities |
|
21,722,829 |
|
|
|
20,116,106 |
|
| Loans and obligations under finance leases; less current maturities |
|
1,554,317 |
|
|
|
1,539,975 |
|
| Operating lease obligations; less current maturities |
|
962,724 |
|
|
|
1,339,965 |
|
|
|
Total liabilities |
|
24,239,870 |
|
|
|
22,996,046 |
|
| Commitments and contingencies |
|
|
|
| Stockholders' equity: |
|
|
|
|
Preferred stock, $.01 par value; 500,000 shares authorized; |
|
- |
|
|
|
- |
|
|
Common stock, $.01 par value; 14,500,000 shares authorized; |
|
|
|
|
|
12,147,458 shares issued and 11,452,959 outstanding as of December 31, 2020 and |
|
|
|
|
|
12,122,149 shares issued and 11,874,646 outstanding as of June 30, 2020 |
|
121,476 |
|
|
|
121,222 |
|
|
Additional paid-in-capital |
|
128,823,181 |
|
|
|
128,677,754 |
|
|
Treasury stock (at cost, 694,499 shares and 247,503 shares |
|
|
|
|
as of December 31, 2020 and June 30, 2020, respectively) |
|
(2,848,640 |
) |
|
|
(1,455,969 |
) |
|
Accumulated deficit |
|
(40,104,089 |
) |
|
|
(34,269,817 |
) |
|
Other comprehensive loss |
|
(32,060,151 |
) |
|
|
(34,085,047 |
) |
|
|
Total NetSol stockholders' equity |
|
53,931,777 |
|
|
|
58,988,143 |
|
|
Non-controlling interest |
|
7,287,273 |
|
|
|
6,488,900 |
|
|
|
Total stockholders' equity |
|
61,219,050 |
|
|
|
65,477,043 |
|
|
|
Total liabilities and stockholders' equity |
$ |
85,458,920 |
|
|
$ |
88,473,089 |
|
NETSOL Technologies, Inc. and Subsidiaries
Schedule 2: Consolidated Statement of Operations
|
|
|
For the Three Months |
|
For the Six Months |
|
|
|
Ended December 31, |
|
Ended December 31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
| Net Revenues: |
|
|
|
|
|
|
|
|
License fees |
$ |
2,586,504 |
|
|
$ |
176,706 |
|
|
$ |
2,589,979 |
|
|
$ |
2,640,922 |
|
|
Subscription and support |
|
5,724,802 |
|
|
|
5,104,736 |
|
|
|
10,896,665 |
|
|
|
9,711,112 |
|
|
Services |
|
4,810,154 |
|
|
|
10,351,153 |
|
|
|
12,282,194 |
|
|
|
16,770,044 |
|
|
Services - related party |
|
- |
|
|
|
57,424 |
|
|
|
- |
|
|
|
140,357 |
|
|
|
Total net revenues |
|
13,121,460 |
|
|
|
15,690,019 |
|
|
|
25,768,838 |
|
|
|
29,262,435 |
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenues: |
|
|
|
|
|
|
|
|
Salaries and consultants |
|
5,294,662 |
|
|
|
4,625,872 |
|
|
|
9,821,311 |
|
|
|
9,080,836 |
|
|
Travel |
|
159,174 |
|
|
|
1,572,923 |
|
|
|
262,926 |
|
|
|
2,915,558 |
|
|
Depreciation and amortization |
|
713,749 |
|
|
|
734,352 |
|
|
|
1,420,998 |
|
|
|
1,454,017 |
|
|
Other |
|
911,566 |
|
|
|
954,912 |
|
|
|
1,839,719 |
|
|
|
1,899,436 |
|
|
|
Total cost of revenues |
|
7,079,151 |
|
|
|
7,888,059 |
|
|
|
13,344,954 |
|
|
|
15,349,847 |
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
6,042,309 |
|
|
|
7,801,960 |
|
|
|
12,423,884 |
|
|
|
13,912,588 |
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
Selling and marketing |
|
1,558,027 |
|
|
|
1,858,096 |
|
|
|
3,167,631 |
|
|
|
3,601,964 |
|
|
Depreciation and amortization |
|
221,572 |
|
|
|
215,479 |
|
|
|
443,362 |
|
|
|
417,866 |
|
|
General and administrative |
|
4,065,788 |
|
|
|
4,568,790 |
|
|
|
7,493,424 |
|
|
|
8,487,403 |
|
|
Research and development cost |
|
110,419 |
|
|
|
454,605 |
|
|
|
196,408 |
|
|
|
1,127,575 |
|
|
|
Total operating expenses |
|
5,955,806 |
|
|
|
7,096,970 |
|
|
|
11,300,825 |
|
|
|
13,634,808 |
|
|
|
|
|
|
|
|
|
|
|
| Income from operations |
|
86,503 |
|
|
|
704,990 |
|
|
|
1,123,059 |
|
|
|
277,780 |
|
|
|
|
|
|
|
|
|
|
|
| Other income and (expenses) |
|
|
|
|
|
|
|
|
Gain (loss) on sale of assets |
|
(52,531 |
) |
|
|
528 |
|
|
|
(74,273 |
) |
|
|
239 |
|
|
Interest expense |
|
(94,241 |
) |
|
|
(88,006 |
) |
|
|
(197,568 |
) |
|
|
(151,669 |
) |
|
Interest income |
|
210,854 |
|
|
|
435,682 |
|
|
|
411,675 |
|
|
|
834,911 |
|
|
Gain (loss) on foreign currency exchange transactions |
|
13,981 |
|
|
|
61,061 |
|
|
|
310,022 |
|
|
|
(1,699,129 |
) |
|
Share of net loss from equity investment |
|
(43,685 |
) |
|
|
(164,796 |
) |
|
|
(151,535 |
) |
|
|
(354,020 |
) |
|
Other income |
|
45,365 |
|
|
|
207,987 |
|
|
|
132,637 |
|
|
|
226,313 |
|
|
|
Total other income (expenses) |
|
79,743 |
|
|
|
452,456 |
|
|
|
430,958 |
|
|
|
(1,143,355 |
) |
|
|
|
|
|
|
|
|
|
|
| Net income (loss) before income taxes |
|
166,246 |
|
|
|
1,157,446 |
|
|
|
1,554,017 |
|
|
|
(865,575 |
) |
| Income tax provision |
|
(245,434 |
) |
|
|
(610,510 |
) |
|
|
(509,728 |
) |
|
|
(848,748 |
) |
| Net income (loss) |
|
(79,188 |
) |
|
|
546,936 |
|
|
|
1,044,289 |
|
|
|
(1,714,323 |
) |
|
Non-controlling interest |
|
(162,916 |
) |
|
|
39,039 |
|
|
|
(568,839 |
) |
|
|
472,351 |
|
| Net income (loss) attributable to NetSol |
$ |
(242,104 |
) |
|
$ |
585,975 |
|
|
$ |
475,450 |
|
|
$ |
(1,241,972 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per share: |
|
|
|
|
|
|
|
|
Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.02 |
) |
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
(0.11 |
) |
|
|
Diluted |
$ |
(0.02 |
) |
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
| Weighted average number of shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
11,580,030 |
|
|
|
11,724,606 |
|
|
|
11,683,631 |
|
|
|
11,694,423 |
|
|
Diluted |
|
11,580,030 |
|
|
|
11,724,606 |
|
|
|
11,683,631 |
|
|
|
11,694,423 |
|
|
|
|
|
|
|
|
|
|
|
NETSOL Technologies, Inc. and Subsidiaries
Schedule 3: Consolidated Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
For the Six Months |
|
|
|
|
Ended December 31, |
|
|
|
|
|
2020 |
|
|
|
2019 |
|
| Cash flows from operating activities: |
|
|
|
|
Net income (loss) |
$ |
1,044,289 |
|
|
$ |
(1,714,323 |
) |
|
Adjustments to reconcile net income (loss) |
|
|
|
|
|
to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
1,864,360 |
|
|
|
1,871,883 |
|
|
Provision for bad debts |
|
(175,575 |
) |
|
|
(20,699 |
) |
|
Share of net loss from investment under equity method |
|
151,535 |
|
|
|
354,020 |
|
|
Loss on sale of assets |
|
74,273 |
|
|
|
(239 |
) |
|
Stock based compensation |
|
165,164 |
|
|
|
328,585 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
5,479,516 |
|
|
|
4,554,558 |
|
|
|
Accounts receivable - related party |
|
- |
|
|
|
2,229,695 |
|
|
|
Revenues in excess of billing |
|
4,540,271 |
|
|
|
(1,088,693 |
) |
|
|
Revenues in excess of billing - related party |
|
- |
|
|
|
14,823 |
|
|
|
Other current assets |
|
(252,781 |
) |
|
|
(208,065 |
) |
|
|
Accounts payable and accrued expenses |
|
313,869 |
|
|
|
490,875 |
|
|
|
Unearned revenue |
|
(554,077 |
) |
|
|
(3,019,493 |
) |
|
Net cash provided by operating activities |
|
12,650,844 |
|
|
|
3,792,927 |
|
|
|
|
|
|
|
|
| Cash flows from investing activities: |
|
|
|
|
Purchases of property and equipment |
|
(1,249,895 |
) |
|
|
(785,999 |
) |
|
Sales of property and equipment |
|
123,194 |
|
|
|
32,524 |
|
|
Convertible note receivable - related party |
|
- |
|
|
|
(535,000 |
) |
|
Investment in associates |
|
(93,000 |
) |
|
|
- |
|
|
Net cash used in investing activities |
|
(1,219,701 |
) |
|
|
(1,288,475 |
) |
|
|
|
|
|
|
|
| Cash flows from financing activities: |
|
|
|
|
Proceeds from exercise of subsidiary options |
|
- |
|
|
|
11,621 |
|
|
Purchase of treasury stock |
|
(1,392,671 |
) |
|
|
- |
|
|
Dividend paid by subsidiary to non-controlling interest |
|
- |
|
|
|
(1,920,618 |
) |
|
Proceeds from bank loans |
|
705,338 |
|
|
|
2,074,341 |
|
|
Payments on finance lease obligations and loans - net |
|
(175,352 |
) |
|
|
(102,499 |
) |
|
Net cash provided by (used in) financing activities |
|
(862,685 |
) |
|
|
62,845 |
|
| Effect of exchange rate changes |
|
1,268,359 |
|
|
|
2,149,923 |
|
| Net increase in cash and cash equivalents |
|
11,836,817 |
|
|
|
4,717,220 |
|
| Cash and cash equivalents at beginning of the period |
|
20,166,830 |
|
|
|
17,366,364 |
|
| Cash and cash equivalents at end of period |
$ |
32,003,647 |
|
|
$ |
22,083,584 |
|
|
|
|
|
|
|
|
NETSOL Technologies, Inc. and Subsidiaries
Schedule 4: Reconciliation to GAAP
|
For the Three Months Ended |
|
For the Three Months Ended |
|
For the Six Months Ended |
|
For the Six Months Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
| Net Income (loss) attributable to NetSol |
$ |
(242,104 |
) |
|
$ |
585,975 |
|
|
$ |
475,450 |
|
|
$ |
(1,241,972 |
) |
| Non-controlling interest |
|
162,916 |
|
|
|
(39,039 |
) |
|
|
568,839 |
|
|
|
(472,351 |
) |
| Income taxes |
|
245,434 |
|
|
|
610,510 |
|
|
|
509,728 |
|
|
|
848,748 |
|
| Depreciation and amortization |
|
935,321 |
|
|
|
949,831 |
|
|
|
1,864,360 |
|
|
|
1,871,883 |
|
| Interest expense |
|
94,241 |
|
|
|
88,006 |
|
|
|
197,568 |
|
|
|
151,669 |
|
| Interest (income) |
|
(210,854 |
) |
|
|
(435,682 |
) |
|
|
(411,675 |
) |
|
|
(834,911 |
) |
| EBITDA |
$ |
984,954 |
|
|
$ |
1,759,601 |
|
|
$ |
3,204,270 |
|
|
$ |
323,066 |
|
| Add back: |
|
|
|
|
|
|
|
| Non-cash stock-based compensation |
|
74,169 |
|
|
|
164,292 |
|
|
|
165,164 |
|
|
|
328,585 |
|
| Adjusted EBITDA, gross |
$ |
1,059,123 |
|
|
$ |
1,923,893 |
|
|
$ |
3,369,434 |
|
|
$ |
651,651 |
|
| Less non-controlling interest (a) |
|
(441,853 |
) |
|
|
(346,644 |
) |
|
|
(1,140,697 |
) |
|
|
(155,409 |
) |
| Adjusted EBITDA, net |
$ |
617,270 |
|
|
$ |
1,577,249 |
|
|
$ |
2,228,737 |
|
|
$ |
496,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average number of shares outstanding |
|
|
|
|
|
|
|
| Basic |
|
11,580,030 |
|
|
|
11,724,606 |
|
|
|
11,683,631 |
|
|
|
11,694,423 |
|
| Diluted |
|
11,580,030 |
|
|
|
11,724,606 |
|
|
|
11,683,631 |
|
|
|
11,694,423 |
|
|
|
|
|
|
|
|
|
| Basic adjusted EBITDA |
$ |
0.05 |
|
|
$ |
0.13 |
|
|
$ |
0.19 |
|
|
$ |
0.04 |
|
| Diluted adjusted EBITDA |
$ |
0.05 |
|
|
$ |
0.13 |
|
|
$ |
0.19 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a)The reconciliation of adjusted EBITDA of non-controlling interest |
|
|
|
|
|
|
|
| to net income attributable to non-controlling interest is as follows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Income (loss) attributable to non-controlling interest |
$ |
162,916 |
|
|
$ |
(39,039 |
) |
|
$ |
568,839 |
|
|
$ |
(472,351 |
) |
| Income Taxes |
|
44,233 |
|
|
|
190,292 |
|
|
|
92,882 |
|
|
|
243,627 |
|
| Depreciation and amortization |
|
264,535 |
|
|
|
270,003 |
|
|
|
529,100 |
|
|
|
529,638 |
|
| Interest expense |
|
28,824 |
|
|
|
25,491 |
|
|
|
60,344 |
|
|
|
44,532 |
|
| Interest (income) |
|
(67,207 |
) |
|
|
(115,670 |
) |
|
|
(133,164 |
) |
|
|
(221,171 |
) |
| EBITDA |
$ |
433,301 |
|
|
$ |
331,077 |
|
|
$ |
1,118,001 |
|
|
$ |
124,275 |
|
| Add back: |
|
|
|
|
|
|
|
| Non-cash stock-based compensation |
|
8,552 |
|
|
|
15,567 |
|
|
|
22,696 |
|
|
|
31,134 |
|
| Adjusted EBITDA of non-controlling interest |
$ |
441,853 |
|
|
$ |
346,644 |
|
|
$ |
1,140,697 |
|
|
$ |
155,409 |
|
|
|
|
|
|
|
|
|
