Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 15

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 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, most 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. Several 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.

    Page 13

NETSOL
TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

September
30, 2025

(Un