Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 15

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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NetSol
Technologies Americas, Inc. (“NTA”)

NetSol
Connect (Private), Ltd. (“Connect”)

NetSol
Technologies Australia Pty Ltd. (“Australia”)

NetSol
Technologies Europe Limited (“NTE”)

NetSol
Technologies (Beijing) Co. Ltd. (“NetSol Beijing”)

Tianjin
NuoJinZhiCheng Co., Ltd (“Tianjin”)

Ascent
Europe Ltd. (“AEL”)

Virtual
Lease Services Holdings Limited (“VLSH”)

Virtual
Lease Services Limited (“VLS”)

Virtual
Lease Services (Ireland) Limited (“VLSIL”)

Otoz,
Inc. (“Otoz®”)

Majority-owned
Subsidiaries

NetSol
Technologies, Ltd. (“NetSol PK”)

NetSol
Innovation (Private) Limited (“NetSol Innovation”)

NETSOL
Ascent Middle East Computer Equipment Trading LLC (“Namecet”)

NetSol
Technologies Thailand Limited (“NetSol Thai”)

Otoz
(Thailand) Limited (“Otoz® Thai”)

    Page 11

NETSOL
TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

March
31, 2025

(Unaudited)

NOTE
2 – ACCOUNTING POLICIES

Use
of Estimates

The
preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. The areas requiring significant estimates are provision for doubtful accounts, provision for taxation, useful life
of depreciable assets, useful life of intangible assets, contingencies, assumptions used to determine the net present value of operating
lease liabilities, and estimated contract costs. The estimates and underlying assumptions are reviewed on an ongoing basis. Actual results
could differ from those estimates.

Concentration
of Credit Risk

Cash
includes cash on hand and demand deposits in accounts maintained within the United States as well as in foreign countries. Certain financial
instruments, which subject the Company to concentration of credit risk, consist of cash and restricted cash. The Company maintains balances
at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation insured