Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 451

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 451
---
 required under
this ASU.

Recent
Accounting Standards Not Yet Adopted by the Company:

In
December 2023, the FASB issued ASU No. 2023-09 – Income Taxes (Topic ASC 740) Income Taxes. This ASU improves
the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation,
as well as disaggregated income taxes paid by jurisdiction. The amendments are effective for annual periods beginning after December
15, 2024. For the Company, this corresponds to fiscal year 2026. The amendments will be applied on a prospective basis, although retrospective
application for prior periods is permitted. 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.

In
November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income
Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement
Expenses. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard requires disclosure
of specified information about certain costs and expenses, including purchases of inventory, employee compensation, depreciation, and
intangible asset amortization from each relevant expense caption. The amendments are effective for annual reporting periods beginning
after December 15, 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