Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 833

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 3
Chunk 833
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judgment to evaluate the relevant facts and circumstances in determining whether agreements should be accounted for separately or as
a single arrangement. The Company’s judgments about whether a group of contracts comprise a single arrangement can affect the allocation
of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved.

If
a contract includes variable consideration, the Company exercises judgment in estimating the amount of consideration to which the entity
will be entitled in exchange for transferring the promised goods or services to a customer. When estimating variable consideration, the
Company will consider all relevant facts and circumstances. Variable consideration will be estimated and included in the contract price
only when it is probable that a significant reversal in the amount of revenue recognized will not occur.

Contract
Balances  

The
timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in
receivables, contract assets (revenues in excess of billings), or contract liabilities (unearned revenue) on the Company’s Consolidated
Balance Sheets. The Company records revenues in excess of billings when the Company has transferred goods or services but does not yet
have the right to consideration. The Company records unearned revenue when the Company has received or has the right to receive
consideration but has not yet transferred goods or services to the customer.

The
revenues in excess of billings are transferred to receivables when the rights to consideration become unconditional, usually upon completion
of a milestone.

The
Company’s revenues in excess of billings and unearned revenue are as follows:

 SCHEDULE
OF REVENUES IN EXCESS OF BILLINGS AND DEFERRED REVENUE

    As
    of  
    As
    of 

    June
    30, 2025  
    June
    30, 2024 

    Revenues
    in excess of billings 
    $19,134,385  
    $13,638,547 

    Unearned
    revenue 
    $3,029,850  
    $8,752,153 

    F-20

NETSOL
                                            TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

The
Company’s unearned revenue reconciliation is as follows:

 SCHEDULE
OF UNEARNED REVENUE RECON