Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 30

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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                                            TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

March
31, 2025

(Unaudited)

Following
is a summary of fixed assets held under finance leases as of March 31, 2025 and June 30, 2024:

 SCHEDULE OF FIXED ASSETS HELD UNDER CAPITAL LEASES

    As of  
    As of 

    March
    31, 2025  
    June
    30, 2024 
  
    Vehicles 
    $138,549  
    $154,718 
  
    Total 
     138,549  
     154,718 
  
    Less: Accumulated
    Depreciation - Net 
     (36,994) 
     (25,078)
  
    Fixed assets held under
    capital leases, Total  
    $101,555  
    $129,640 

Finance
lease term and discount rate were as follows:

 SCHEDULE OF FINANCE LEASE TERM

    As
    of  
    As
    of 

    March
    31, 2025  
    June
    30, 2024 
  
    Weighted
    average remaining lease term - Finance leases 
     2
                                            Years   
     2.75
                                            Years  

    Weighted
    average discount rate - Finance leases 
     11.3% 
     11.3%

NOTE
10 - LEASES

The
Company leases certain office space, office equipment and autos with remaining lease terms of one year to 10 years under leases classified
as financing and operating. For certain leases, the Company has options to extend the lease term for additional periods ranging from
one year to 10 years.

The
Company treats a contract as a lease when the contract conveys the right to use a physically distinct asset for a period of time in exchange
for consideration, or the Company directs the use of the asset and obtains substantially all the economic benefits of the asset. These
leases are recorded as right-of-use (“ROU”) assets and lease obligation liabilities for leases with terms greater than 12
months. ROU assets represent the Company’s right to use an underlying asset for the entirety of the lease term. Lease liabilities
represent the Company’s obligation to make payments over the life of the lease. A ROU asset and a lease liability are recognized