NETSOL Technologies, Inc. Reports $5.2 Million Loss for Fiscal Year 2023
Annual Revenue of $52.4 Million Revealed in Financial Statements
NETSOL Technologies, Inc. (NTWK), a global provider of software so lutions for the finance and leasing industry, has reported its financial results for the fiscal year ending June 30, 2023. The company's consolidated balance sheets and statement of operations reveal a net loss of $5.2 million for the year, accompanied by annual revenues of $52.4 million. Let's delve into the details of NETSOL's financial performance.
Consolidated Balance Sheets
Current Assets Decline
As of June 30, 2023, NETSOL Technologies reported total current assets of $41.6 million, a decrease from $49.4 million in the previous fiscal year. The decline in current assets is primarily attributed to a reduction in cash and cash equivalents, which fell from $23.9 million in 2022 to $15.5 million in 2023. Additionally, accounts receivable increased to $11.7 million, compared to $8.7 million the previous year.
Long-Term Investments and Intangible Assets
NETSOL's long-term investments amounted to $25,396, while intangible assets netted at $127,931. The company's goodwill remained constant at $9.3 million.
Liabilities and Stockholders' Equity
On the liabilities side, the company reported current liabilities of $20.8 million, with accounts payable and accrued expenses totaling $6.6 million. Long-term liabilities amounted to $176,229, and operating lease obligations totaled $652,194.
In terms of stockholders' equity, NETSOL Technologies reported total stockholders' equity of $36.8 million, which includes a non-controlling interest of $2.9 million.
Consolidated Statement of Operations
Decrease in Net Revenue
NETSOL reported net revenues of $13.8 million for the three months ending June 30, 2023, compared to $13.5 million during the same period in the previous year. The year-end net revenues for 2023 were $52.4 million, a decrease from $57.2 million in 2022.
Operating Expenses
The company faced operating expenses of $7.7 million, including selling, general, and administrative expenses of $7.4 million, and research and development costs of $356,820.
Net Loss Before Income Taxes
NETSOL Technologies reported a loss from operations of $2.9 million for the year, compared to a loss of $1.6 million in 2022. After factoring in other income and expenses, the company reported a net loss before income taxes of $3.2 million, compared to a net income of $2.1 million in the previous year.
Consolidated Statement of Cash Flows
Operating Activities and Net Income
NETSOL's cash flows from operating activities yielded a net cash provided amount of $2.0 million, compared to $3.1 million in 2022. The net loss for the year amounted to $4.1 million, including adjustments such as depreciation and amortization, provision for bad debts, and stock-based compensation.
Investing and Financing Activities
The company's cash flows from investing activities included purchases and sales of property and equipment, resulting in a net cash used of $1.4 million. NETSOL also engaged in financing activities that included the purchase of treasury stock, proceeds from bank loans, and payments on finance lease obligations and loans, resulting in a net cash used of $719,000.
Exchange Rate Impact
NETSOL Technologies experienced an impact of exchange rate changes, resulting in a net decrease in cash and cash equivalents of $8.4 million.
Despite challenges in the fiscal year 2023, NETSOL Technologies, Inc. remains a leading player in the finance and leasing software solutions industry. The company's focus on innovation and expanding its global footprint continues to be a driving force in its mission to deliver cutting-edge technology to its clients.
