Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 21

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 and these timing differences result in receivables, contract
assets (revenues in excess of billings), or contract liabilities (unearned revenue) on the Company’s Consolidated Balance Sheets.
The Company records revenues in excess of billings when the Company has transferred goods or services but does not yet have the right
to consideration. The Company records unearned revenue when the Company has received or has the right to receive consideration but has
not yet transferred goods or services to the customer.

The revenues
in excess of billings are transferred to receivables when the rights to consideration become unconditional, usually upon completion of
a milestone.

The Company’s
revenues in excess of billings and unearned revenue are as follows:

SCHEDULE OF REVENUES IN EXCESS OF BILLINGS AND DEFERRED REVENUE 

    As of  
    As of 

    December 31, 2024  
    June 30, 2024 

    Revenues in excess of billings 
    $11,438,977  
    $13,638,547 

    Unearned revenue 
    $3,320,286  
    $8,752,153 

The Company’s
unearned revenue reconciliation is as follows:

SCHEDULE OF UNEARNED REVENUE RECONCILIATION 

    Unearned Revenue 
  
    Balance at June 30, 2024 
    $8,752,153 
  
    Invoiced 
     9,309,191 
  
    Revenue Recognized 
     (14,644,315)
  
    Adjustments 
     (96,743)
  
    Balance at December 31, 2024 
    $3,320,286 

During
the three and six months ended December 31, 2024, the Company recognized revenue of $3,514,159 and $7,686,403 that was included
in the unearned revenue balance at the beginning of the period. All other activity in unearned revenue is due to the timing of invoicing
in relation to the timing of revenue recognition.

    Page 16

NETSOL
TECHNOLOGIES, INC. 

Notes
to Condensed Consolidated Financial Statements 

December
31, 2024 

(Unaudited)

Revenue
allocated to the remaining performance obligations represents the transaction price allocated to the performance obligations that are
unsatisfied, or partially unsatisfied,