Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 84

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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Otoz®”)

Majority-owned
Subsidiaries

NetSol
Technologies, Ltd. (“NetSol PK”)

NetSol
Innovation (Private) Limited (“NetSol Innovation”)

NETSOL
Ascent Middle East Computer Equipment Trading LLC (“Namecet”)

NetSol
Technologies Thailand Limited (“NetSol Thai”)

Otoz
(Thailand) Limited (“Otoz® Thai”)

    Page 11

NETSOL
TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

March
31, 2025

(Unaudited)

NOTE
2 – ACCOUNTING POLICIES

Use
of Estimates

The
preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. The areas requiring significant estimates are provision for doubtful accounts, provision for taxation, useful life
of depreciable assets, useful life of intangible assets, contingencies, assumptions used to determine the net present value of operating
lease liabilities, and estimated contract costs. The estimates and underlying assumptions are reviewed on an ongoing basis. Actual results
could differ from those estimates.

Concentration
of Credit Risk

Cash
includes cash on hand and demand deposits in accounts maintained within the United States as well as in foreign countries. Certain financial
instruments, which subject the Company to concentration of credit risk, consist of cash and restricted cash. The Company maintains balances
at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation insured limits for the banks located
in the United States. Balances at financial institutions within certain foreign countries are not covered by insurance except balances
maintained in China are insured for RMB 500,000 ($68,871) in each bank and in the UK for GBP 85,000 ($110,390) in each bank. The Company
maintains three bank accounts in China and nine bank accounts in the UK. As of March 31, 2025, and June 30, 2024, the Company had uninsured
deposits related to cash deposits in accounts maintained within foreign entities of approximately $17,848,732 and $18,182,002, respectively.
The Company has not experienced any losses in such