Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 22

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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849  
     19,664,970  
     15,566,480 
  
    Total core revenue, net 
     16,155,303  
     14,176,547  
     44,463,545  
     40,876,104 

    Non-Core: 

    Services 
     1,388,654  
     1,287,969  
     3,215,571  
     4,068,534 
  
    Total non-core revenue, net 
     1,388,654  
     1,287,969  
     3,215,571  
     4,068,534 

    Total net revenue 
    $17,543,957  
    $15,464,516  
    $47,679,116  
    $44,944,638 

Significant
Judgments

Due
to the complexity of certain contracts, the actual revenue recognition treatment required under Topic 606 for the Company’s arrangements
may be dependent on contract-specific terms and may vary in some instances.

Judgment
is required to determine the SSP for each distinct performance obligation. The Company rarely licenses or sells products on a stand-alone
basis, so the Company is required to estimate the range of SSPs for each performance obligation. In instances where SSP is not directly
observable because the Company does not sell the license, product, or service separately, the Company determines the SSP using information
that may include market conditions and other observable inputs. In making these judgments, the Company analyzes various factors, including
its pricing methodology and consistency, size of the arrangement, length of term, customer demographics and overall market and economic
conditions. Based on these results, the estimated SSP is set for each distinct product or service delivered to customers.

The
most significant inputs involved in the Company’s revenue recognition policies are: The (1) stand-alone selling prices of the Company’s
software license, and the (2) the method of recognizing revenue for installation/customization, and other services.

The
stand-alone selling price of the licenses was measured primarily through an analysis of pricing that management evaluated when quoting
prices to customers. Although the Company has no history of selling its software separately from post contract support and other services,
the Company does have historical experience with amending contracts with customers to provide additional modules of its software or providing
those modules at an optional price. This information