Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 448

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 448
---
     (128,921) 
     430,111 
  
    Amortization
    during the period 
     -  
     73,066  
     73,066 
  
    Transfers
    to short term 
     (521,875) 
     -  
     (521,875)
  
    Effect
    of Translation Adjustment 
     (31,829) 
     264  
     (31,565)
  
    Balance
    at June 30, 2025 
    $1,111,803  
    $(208,037) 
    $903,766 

The
Company used the discounted cash flow method with interest rates ranging from 4.2% to 17.5%, for the year ended June 30, 2025 and 2024.

Unearned
Revenue

Unearned
revenue represents billings in excess of revenue earned on contracts and are recognized on a pro-rata basis over the life of the contract.

Cost
of Revenues

Cost
of revenues includes salaries and benefits for technical employees, consultant costs, amortization of capitalized computer software
development costs, depreciation of computer and equipment, travel costs, and indirect costs such as rent and insurance.

Advertising
Costs

The
Company expenses the cost of advertising as incurred. Advertising costs for the years ended June 30, 2025 and 2024 were $346,232 and
$148,953, respectively.

Share-Based
Compensation

The
Company records stock compensation in accordance with ASC 718, Compensation – Stock Compensation. ASC 718 requires companies
to measure compensation cost for stock employee compensation at fair value at the grant date and recognize the expense over the employee’s
requisite service period. The Company recognizes forfeitures as they occur. The Company recognizes in the statement of operations the
grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees.

    F-14

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

Income
Taxes

Income
taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases and operating loss and tax credit carry forwards. Deferred tax