Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 2013

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 10
Chunk 2013
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 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. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard requires disclosure
of specified information about certain costs and expenses, including purchases of inventory, employee compensation, depreciation, and
intangible asset amortization from each relevant expense caption. The amendments are effective for annual reporting periods beginning
after December 15, 2026, which corresponds to the Company’s fiscal year 2028 and interim periods beginning after December 15, 2027,
which corresponds to the Company’s first quarter of fiscal 2029. Early adoption and retrospective application are permitted but
not required. The Company plans to adopt the standard and make the required disclosures beginning in fiscal year 2028 for annual periods
and in Q1 of fiscal 2029 for interim periods. 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.

All
other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable.

    F-16

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

NOTE
3 – REVENUE RECOGNITION

The
Company determines revenue recognition through the following steps:

●Identification
                                            of the contract, or contracts, with a customer;

●Identification
                                            of the performance obligations in the contract;

●Determination
                                            of the transaction price;

●Allocation
                                            of the transaction price to the performance obligations in the contract; and

●Recognition
                                            of revenue when, or as, the Company satisfies a performance obligation.

The
Company records the amount of revenue and related costs by considering whether the entity is a principal (gross presentation) or an agent
(net presentation) by evaluating the nature of its promise to the customer. Revenue is presented net of sales, value-added and other
taxes collected from customers and remitted to government authorities.