Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 16

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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audited)

The
Company’s disaggregated revenue by category is as follows:

 SCHEDULE OF DISAGGREGATED REVENUE BY CATEGORY

    2025  
    2024 

    For
    the Three Months Ended September 30, 

    2025  
    2024 
  
    Core: 

    License 
    $72,225  
    $1,229 
  
    Subscription
    and support 
     8,960,555  
     8,192,471 
  
    Services 
     5,094,911  
     5,530,629 
  
    Total
    core revenue, net 
     14,127,691  
     13,724,329 

    Non-Core: 

    Services 
     884,232  
     874,169 
  
    Total
    non-core revenue, net 
     884,232  
     874,169 

    Total
    net revenue 
    $15,011,923  
    $14,598,498 

Significant
Judgments

Due
to the complexity of certain contracts, the actual revenue recognition treatment required under Topic 606 for the Company’s arrangements
may be dependent on contract-specific terms and may vary in some instances.

Judgment
is required to determine the SSP for each distinct performance obligation. The Company rarely licenses or sells products on a stand-alone
basis, so the Company is required to estimate the range of SSPs for each performance obligation. In instances where SSP is not directly
observable because the Company does not sell the license, product, or service separately, the Company determines the SSP using information
that may include market conditions and other observable inputs. In making these judgments, the Company analyzes various factors, including
its pricing methodology and consistency, size of the arrangement, length of term, customer demographics and overall market and economic
conditions. Based on these results, the estimated SSP is set for each distinct product or service delivered to customers.

The
most significant inputs involved in the Company’s revenue recognition policies are: The (1) stand-alone selling prices of the Company’s
software license, and the (2) the method of recognizing revenue for installation/customization, and other services.

The
stand-alone selling price of the licenses was measured primarily through an analysis of pricing that management evaluated when quoting
prices to customers. Although the Company has no history of selling