Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 325

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 325
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 about which separate financial information is available that is evaluated regularly
by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company allocates its resources
and assesses the performance of its sales activities based on the geographic locations of its subsidiaries.

Recent
Accounting Standards Adopted by the Company:

In
November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements
to Reportable Segment Disclosures, which expands reportable segment disclosure requirements, primarily through enhanced disclosures
about significant segment expenses regularly provided to the chief operating decision maker (“CODM”), a description of other
segment items by reportable segment, and any additional measures of a segment’s profit or loss used by the CODM when deciding how
to allocate resources. The Company adopted the standard on a retrospective basis and made the required annual disclosures as of June
30, 2025. Interim disclosures are required for periods within fiscal years beginning in the first quarter of the Company’s fiscal
year 2026. As the guidance only requires additional disclosure, there were no effects of adoption on our financial position, results
of operations, or cash flows. See Note 17 – Segment Information and Geographic Areas for the segment disclosure required under
this ASU.

Recent
Accounting Standards Not Yet Adopted by the Company:

In
December 2023, the FASB issued ASU No. 2023-09 – Income Taxes (Topic ASC 740) Income Taxes. This ASU improves
the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation,
as well as disaggregated income taxes paid by jurisdiction. The amendments are effective for annual periods beginning after December
15, 2024. For the Company, this corresponds to fiscal year 2026. The amendments will be applied on a prospective basis, although retrospective
application for prior periods is permitted. The Company expects the adoption of this ASU to result in additional disclosures but does not anticipate any impact on its financial
position, results of operations, or cash flows.

In
November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income
Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement
Expenses. Additionally