Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1528

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 1528
---
 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, a majority of 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.  A number
of 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.

    F-18

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

The
Company’s disaggregated revenue by category is as follows:

 SCHEDULE
OF DISAGGREGATED REVENUE BY CATEGORY

    2025  
    2024 

    For
    the Years 

    Ended
    June 30, 

    2025