Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 61

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 61
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 2026, which corresponds to the Company’s fiscal year 2028 and interim periods beginning after December 15, 2027,
which corresponds to the Company’s first quarter of fiscal 2029. Early adoption and retrospective application are permitted but
not required. The Company plans to adopt the standard and make the required disclosures beginning in fiscal year 2028 for annual periods
and in Q1 of fiscal 2029 for interim periods. The Company expects the adoption of this ASU to result in additional disclosures but does
not anticipate any impact on its financial position, results of operations, or cash flows.

All
other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable.

    F-16

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

NOTE
3 – REVENUE RECOGNITION

The
Company determines revenue recognition through the following steps:

●Identification
                                            of the contract, or contracts, with a customer;

●Identification
                                            of the performance obligations in the contract;

●Determination
                                            of the transaction price;

●Allocation
                                            of the transaction price to the performance obligations in the contract; and

●Recognition
                                            of revenue when, or as, the Company satisfies a performance obligation.

The
Company records the amount of revenue and related costs by considering whether the entity is a principal (gross presentation) or an agent
(net presentation) by evaluating the nature of its promise to the customer. Revenue is presented net of sales, value-added and other
taxes collected from customers and remitted to government authorities.

The
Company has two primary revenue streams: core revenue and non-core revenue.

Core
Revenue

The
Company generates its core revenue from the following sources: (1) software licenses, (2) services, which include implementation and
consulting services, and (3) subscription and support, which includes post-contract support, of its enterprise software solutions for
the lease and finance industry. The Company offers its software using the same underlying technology via two models: a traditional
on-premises licensing model and a subscription model. The on-premises model involves the sale or license of software on a perpetual basis
to customers who take possession of the software and install and maintain the software on their own hardware. Under the subscription
delivery model, the Company provides access to its software on a hosted basis as a service