Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 2365

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 15
Chunk 2365
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 term, while variable lease payments are expensed as incurred. Variable
payments change due to facts or circumstances occurring after the commencement date, other than the passage of time, and do not result
in a re-measurement of lease liabilities. The Company’s variable lease payments include payments for finance leases that are adjusted
based on a change in the Karachi Inter Bank Offer Rate. The Company’s lease agreements do not contain any significant residual
value guarantees or restrictive covenants.

    F-25

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

Supplemental
balance sheet information related to leases was as follows:

 SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASE

    As
    of  
    As
    of 

    June
    30, 2025  
    June
    30, 2024 
  
    Assets 

    Operating
    lease assets, net 
    $809,513  
    $1,328,624 

    Liabilities 

    Current 

    Operating 
    $433,242  
    $608,202 

    Operating, Current 
    $433,242  
    $608,202 
  
    Non-current 

    Operating 
     333,374  
     688,749 

    Operating, Noncurrent 
     333,374  
     688,749 
  
    Total
    Lease Liabilities 
    $766,616  
    $1,296,951 

The
components of lease cost were as follows:

 SCHEDULE OF COMPONENTS OF LEASE COST

    2025  
    2024 

    For
    the Years 

    Ended
    June 30, 

    2025  
    2024 

    Amortization
    of finance lease assets 
    $37,228  
    $15,061 
  
    Interest
    on finance lease obligation 
     11,845  
     6,206 
  
    Operating
    lease cost 
     383,760  
     403,438 
  
    Short
    term lease cost 
     237,733  
     297,014 
  
    Sub
    lease income 
     (34,180) 
     (33,