Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 29

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 29
---
 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 when events or changes in circumstances occur that indicate that the carrying value of
the asset may not be recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying
value of the asset from the expected undiscounted future pre-tax cash flows of the related operations.

The Company
elected the practical expedient to exclude short-term leases (leases with original terms of 12 months or less) from ROU asset and lease
liability accounts.

Lease expense
is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. Variable payments
change due to facts or circumstances occurring after the commencement date, other than the passage of time, and do not result in a re-measurement
of lease liabilities. The Company’s variable lease payments include payments for finance leases that are adjusted based on a change
in the Karachi Inter Bank Offer Rate. The Company’s lease agreements do not contain any significant residual value guarantees or restrictive
covenants.

    Page 21

NETSOL
TECHNOLOGIES, INC. 

Notes
to Condensed Consolidated Financial Statements 

December
31, 2024 

(Unaudited)

Supplemental balance sheet information
related to leases was as follows:

SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASE 

    As of  
    As of 

    December 31, 2024  
    June 30, 2024 
  
    Assets 

    Operating lease assets, net 
    $1,069,948  
    $1,328,624 

    Liabilities 

    Current 

    Operating 
    $518,075  
    $608,202 
  
    Operating, Current 
    $518,075  
    $608,202 

    Non-current 

    Operating 
     512,062  
     688,749 
  
    Operating, Noncurrent 
     512,062  
     688,749 

    Total Lease Liabilities 
    $1,030,137  
    $1,296,951 

The components of lease cost
were as follows: 

SCHEDULE OF