Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 697

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 2
Chunk 697
---
 insured for RMB500,000 ($69,735) in each bank and in the UK for GBP 85,000 ($116,438) in each bank. The Company
maintains three bank accounts in China and nine bank accounts in the UK. As of June 30, 2025 and 2024, the Company had uninsured
deposits related to cash deposits in accounts maintained within foreign entities of approximately $16,386,079 and $18,182,002, respectively.
The Company has not experienced any losses in such accounts.

The
Company’s operations are carried out globally. Accordingly, the Company’s business, financial condition and results of operations
may be influenced by the political, economic and legal environments of each country and by the general state of the country’s
economy. The Company’s operations in each foreign country are subject to specific considerations and significant risks not typically
associated with companies in economically developed nations. These include risks associated with, among others, the political, economic
and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental
policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods
of taxation, among other things.

Accounts
Receivable and Allowance for Doubtful Accounts

Accounts
receivable are recorded at the invoiced amount and are non-interest bearing. The Company recognizes an allowance for credit losses in
accordance with ASC 326, Financial Instrument -Credit Losses, based on expected losses over the contractual life of the receivables.
In measuring expected credit losses, management considers historical loss experience, customer credit quality, current economic conditions,
and reasonable and supportable forecasts. The allowance is evaluated collectively for groups of receivables with similar risk characteristics,
with specific reserves established for receivables that do not share those characteristics or when collectability is uncertain. Receivables
are written off against the allowance when collection efforts have been exhausted and recovery is not expected. Recoveries of amounts
previously written off are recognized when received.

    F-11

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

Revenues
in Excess of Billings

Revenues
in excess of billings represent the total of the project to be billed to the customer for revenues recognized per US GAAP. As the customers