Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 66

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 66
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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 RECONCILIATION

    Unearned
    Revenue 

    Balance at June 30, 2023 
    $7,932,306 
  
    Invoiced 
     24,039,382 
  
    Revenue Recognized 
     (23,216,573)
  
    Adjustments 
     (2,962)
  
    Balance at June 30, 2024 
    $8,752,153 
  
    Invoiced 
     23,567,456 
  
    Revenue Recognized 
     (29,201,839)
  
    Adjustments 
     (87,920)
  
    Balance
    at June 30, 2025 
    $3,029,