Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1197

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 6
Chunk 1197
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 30, 2025 and 2024 is as follows:

SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS RECONCILIATION

    Revenues
                                            in excess of
                                                                               billings
                                            - long term  
    Fair
    value discount  
    Total 
  
    Balance
    at June 30, 2023 
    $-  
    $-  
    $- 
  
    Additions 
     1,107,853  
     (194,827) 
     913,026 
  
    Amortization
    during the period 
     -  
     42,814  
     42,814 
  
    Effect
    of Translation Adjustment 
     (1,378) 
     (433) 
     (1,811)
  
    Balance
    at June 30, 2024 
    $1,106,475  
    $(152,446) 
    $954,029 
  
    Additions 
     559,032  
     (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