Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 454

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 454
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 performed as measured by costs incurred to date, compared to total estimated costs to complete the services project. 
Management applies judgment when estimating project status and the costs necessary to complete the services projects.  A number
of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification
and testing requirement changes. Services are generally invoiced upon milestones in the contract or upon consumption of the hourly resources
and payments are typically due 30 days after invoice.

BPO
and Internet Services

Revenue
from BPO services is recognized based on the stage of completion which is measured by reference to labor hours incurred to date as a
percentage of total estimated labor hours for each contract. Internet services are invoiced either monthly, quarterly or half yearly
in advance to the customers and revenue is recognized ratably overtime on a monthly basis.

Disaggregated
Revenue

The
Company disaggregates revenue from contracts with customers by category -- core and non-core, as it believes it best depicts how the
nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

    F-18

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

The
Company’s disaggregated revenue by category is as follows:

 SCHEDULE
OF DISAGGREGATED REVENUE BY CATEGORY

    2025  
    2024 

    For
    the Years 

    Ended
    June 30, 

    2025  
    2024 
  
    Core: 

    License 
    $598,633  
    $5,449,991 
  
    Subscription
    and support 
     32,934,648  
     27,952,768 
  
    Services 
     28,921,965  
     22,526,010 
  
    Total
    core revenue, net 
     62,455,246  
     55,928,769 

    Non-Core: 

    Services 
     3,632,983  
     5,464,322 
  
    Total
    non-core revenue, net 
     3,632,983  
     5,464,322 

    Total
    net revenue 
    $66,088,229  
    $61,393,091