Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 12

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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    Total 
  
    Balance at June 30, 2025 
    $1,111,803  
    $(208,037) 
    $903,766 
  
    Amortization during the period 
     -  
     24,814  
     24,814 
  
    Transfers to short term 
     (56,813) 
     -  
     (56,813)
  
    Effect of Translation
    Adjustment 
     9,200  
     86  
     9,286 
  
    Balance at September 30, 2025 
    $1,064,190  
    $(183,137) 
    $881,053 

Management
analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from
Equity” and ASC 815, “Derivatives and Hedging.” Derivative liabilities are adjusted to reflect fair value
at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value
of derivatives. The effects of interactions between embedded derivatives are calculated and accounted for in arriving at the overall
fair value of the financial instruments. In addition, the fair values of freestanding derivative instruments such as warrants and option
derivatives are valued using the Black-Scholes model.

Recent
Accounting Standards:

In
December 2023, the FASB issued ASU No. 2023-09 – Income Taxes (Topic ASC 740) Income Taxes. This ASU improves the transparency
of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation, as
well as disaggregated income taxes paid by jurisdiction. The amendments are effective for annual periods beginning after December 15,
2024. For the Company, this corresponds to fiscal year 2026. The amendments will be applied on a prospective basis, although retrospective
application for prior periods is permitted. The Company expects the adoption of this ASU to result in additional disclosures but does
not anticipate any impact on its financial position, results of operations, or cash flows.

In
November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03,
Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of
Income Statement Expenses