Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 99

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 99
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 Depreciation - Net 
     (36,994) 
     (25,078)
  
    Fixed assets held under
    capital leases, Total  
    $101,555  
    $129,640 

Finance
lease term and discount rate were as follows:

 SCHEDULE OF FINANCE LEASE TERM

    As
    of  
    As
    of 

    March
    31, 2025  
    June
    30, 2024 
  
    Weighted
    average remaining lease term - Finance leases 
     2
                                            Years   
     2.75
                                            Years  

    Weighted
    average discount rate - Finance leases 
     11.3% 
     11.3%

NOTE
10 - LEASES

The
Company leases certain office space, office equipment and autos with remaining lease terms of one year to 10 years under leases classified
as financing and operating. For certain leases, the Company has options to extend the lease term for additional periods ranging from
one year to 10 years.

The
Company treats a contract as a lease when the contract conveys the right to use a physically distinct asset for a period of time in exchange
for consideration, or the Company directs the use of the asset and obtains substantially all the economic benefits of the asset. These
leases are recorded as right-of-use (“ROU”) assets and lease obligation liabilities for leases with terms greater than 12
months. ROU assets represent the Company’s right to use an underlying asset for the entirety of the lease term. Lease liabilities
represent the Company’s obligation to make payments over the life of the lease. A ROU asset and a lease liability are recognized
at commencement of the lease based on the present value of the lease payments over the life of the lease. Initial direct costs are included
as part of the ROU asset upon commencement of the lease. Since the interest rate implicit in a lease is generally not readily determinable
for the operating leases, the Company uses an incremental borrowing rate to determine the present value of the lease payments. The incremental
borrowing rate represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar lease
term to obtain an asset of similar value.

The
Company reviews the impairment of ROU assets consistent with the approach applied to the Company’s other long-lived assets. The
Company reviews the recoverability of long-lived assets