Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 85

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 accounts.

The
Company’s operations are carried out globally. Accordingly, the Company’s business, financial condition and results of operations
may be influenced by the political, economic and legal environments of each country and by the general state of the country’s economy.
The Company’s operations in each foreign country are subject to specific considerations and significant risks not typically associated
with companies in economically developed nations. These include risks associated with, among others, the political, economic and legal
environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies
with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of
taxation, among other things.

Fair
Value of Financial Instruments

The
Company applies the provisions of Accounting Standards Codification (“ASC”) 820-10, “Fair Value Measurements and
Disclosures.” ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value
measurement that enhances disclosure requirements for fair value measures. For certain financial instruments, including cash and cash
equivalents, accounts receivable, accounts payable and short-term debt, the carrying amounts approximate fair value due to their relatively
short maturities. The carrying amounts of the long-term debt approximate their fair values based on current interest rates for instruments
with similar characteristics.

The
three levels of valuation hierarchy are defined as follows:

    Level
    1:
     
    Valuations
    consist of unadjusted quoted prices in active markets for identical assets and liabilities and has the highest priority.

    Level
    2:
     
    Valuations
    rely on quoted prices in markets that are not active or observable inputs over the full term of the asset or liability.

    Level
    3:
     
    Valuations
    are based on prices or third party or internal valuation models that require inputs that are significant to the fair value measurement
    and are less observable and thus have the lowest priority.

    Page 12

NETSOL
                                            TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

March
31, 2025

(Unaudited)

The
Company’s financial assets that were measured at fair value on a recurring basis as of March 31, 2025, were as follows:

 SCHEDULE OF FAIR VALUE OF FINANCIAL ASSETS MEASURED ON RECURRING BASIS

    Level
    1  
    Level