Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 9

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 reports. Results of operations for the
interim periods are not indicative of annual results.

The
accompanying consolidated financial statements include the accounts of the Company as follows:

Wholly
owned Subsidiaries

NetSol
Technologies Americas, Inc. (“NTA”)

NetSol
Connect (Private), Ltd. (“Connect”)

NetSol
Technologies Australia Pty Ltd. (“Australia”)

NetSol
Technologies Europe Limited (“NTE”)

NetSol
Technologies (Beijing) Co. Ltd. (“NetSol Beijing”)

Tianjin
NuoJinZhiCheng Co., Ltd (“Tianjin”)

Ascent
Europe Ltd. (“AEL”)

Virtual
Lease Services Holdings Limited (“VLSH”)

Virtual
Lease Services Limited (“VLS”)

Virtual
Lease Services (Ireland) Limited (“VLSIL”)

Majority-owned
Subsidiaries

NetSol
Technologies, Ltd. (“NetSol PK”)

NetSol
Innovation (Private) Limited (“NetSol Innovation”)

NetSol
Institute of Artificial Intelligence (Private) Limited (“NIAI”)

NETSOL
Ascent Middle East Computer Equipment Trading LLC (“Namecet”)

NetSol
Technologies Thailand Limited (“NetSol Thai”)

Otoz
(Thailand) Limited (“Otoz® Thai”)

    Page 9

NETSOL
TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

September
30, 2025

(Unaudited)

NOTE
2 – ACCOUNTING POLICIES

Use
of Estimates

The
preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. The areas requiring significant estimates are the measurement of progress toward completion of long-term software
implementation projects, the allocation of the transaction price in multiple performance obligations, expected credit loss on accounts
receivable and revenues in excess of billings, provision for taxation, useful life of depreciable assets, useful life of intangible assets,
contingencies, the determination of stock-based compensation expense and estimated contract costs. The estimates and underlying assumptions
are reviewed on an ongoing basis. Actual results could differ from