Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1208

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 6
Chunk 1208
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The Company generally expenses sales commissions and sales agent fees when incurred when the amortization period would have been one year
or less or the commissions are based on cashed received. These costs are recorded within sales and marketing expense in the Consolidated
Statement of Operations.

●
The Company does not disclose the value of unsatisfied performance obligations for contracts for which the Company recognizes
revenue at the amount to which it has the right to invoice for services performed (applies to time-and-material engagements).

    F-21

NETSOL
                                            TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

Costs
to Obtain a Contract

The
Company does not have a material amount of costs to obtain a contract capitalized at any balance sheet date. In general, the Company
incurs few direct incremental costs of obtaining new customer contracts. The Company rarely incurs incremental costs to review or otherwise
enter into contractual arrangements with customers. In addition, the Company’s sales personnel receive fees that are referred to
as commissions, but that are based on more than simply signing up new customers. The Company’s sales personnel are required to
perform additional duties beyond new customer contract inception dates, including fulfillment duties and collections efforts.

NOTE
4 – EARNINGS PER SHARE

Basic
earnings per share are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted
earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common
shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options
and stock awards.

The
components of basic and diluted earnings per share were as follows:

 SCHEDULE OF DILUTIVE POTENTIAL COMMON SHARES

    For the year ended June 30, 2025 

    Net
    Income  
    Shares  
    Per
    Share 
  
    Basic income per share: 

    Net income 
    $2,923,233  
     11,576,287  
    $0.25 
  
    Effect of dilutive securities 

    Stock
    options 
     -  
     -  
     - 
  
    Diluted income per share 
    $2,923,233  
     11,576,287  
    $0.25