Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 328

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 328
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to 60 months. The Company generally invoices its
customers in advance in quarterly or annual installments and typical payment terms provide that customers make payment within 30 days
of invoice.

Post
Contract Support

Revenue
from support services and product updates, referred to as subscription and support revenue, is recognized ratably over the term of the
maintenance period, which in most instances is one year. Software license updates provide customers with rights to unspecified
software product updates and patches released during the term of the support period on a when-and-if available basis. The Company’s
customers purchase both product support and license updates when they acquire new software licenses. In addition, a majority of customers
renew their support services contracts annually and typical payment terms provide that customers make payment within 30 days
of invoice.

Professional
Services

Revenue
from professional services is typically comprised of implementation, development, data migration, training or other consulting services.
Consulting services are generally sold on a time-and-materials or fixed fee basis and can include services ranging from software installation
to data conversion and building non-complex interfaces to allow the software to operate in integrated environments. The Company recognizes
revenue for time-and-materials arrangements as the services are performed.  In fixed fee arrangements, revenue is recognized as
services are performed as measured by costs incurred to date, compared to total estimated costs to complete the services project. 
Management applies judgment when estimating project status and the costs necessary to complete the services projects.  A number
of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification
and testing requirement changes. Services are generally invoiced upon milestones in the contract or upon consumption of the hourly resources
and payments are typically due 30 days after invoice.

BPO
and Internet Services

Revenue
from BPO services is recognized based on the stage of completion which is measured by reference to labor hours incurred to date as a
percentage of total estimated labor hours for each contract. Internet services are invoiced either monthly, quarterly or half yearly
in advance to the customers and revenue is recognized ratably overtime on a monthly basis.

Disaggregated
Revenue

The
Company disaggregates revenue from contracts with customers by category -- core and non-core, as it believes it best depicts how the
nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

    F-18

NETSOL
TECHNOLOGIES, INC