Company: NTCL
Filing Date: 2025-10-20
Form Type: F-1
Source: 0001104659-25-100526
Chunk: 316

Company: NetClass Technology Inc
Filing Date: 2025-10-20
Form: F-1
Chunk 316
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2024, the disaggregation of revenue by major revenue stream is as follows:

| ​                                | ​ 
 ​ | ​ |         ​ 
      2025 | ​ | ​ |         ​ 
      2024 |
|:---------------------------------|:--|:--|----------:|:--|:--|----------:|
| Application development services | ​ | $ | 2,491,822 | ​ | $ | 2,429,289 |
| Subscription service             |   | ​ | 1,162,588 |   | ​ | 1,330,225 |
| Finance income                   |   | ​ |         — |   | ​ |     6,678 |
| Total                            | ​ | $ | 3,654,410 | ​ | $ | 3,766,192 |

Advertising expenditures

Advertising expenditures are expensed as incurred for the periods presented. Advertising expenditures are included in selling expenses. For the six months ended March 31, 2025 and 2024, advertising expenses were $ and $ respectively.

F-43

Operating leases The Company mainly leases administrative offices and operating centers from property owners. These are all classified as operating leases. The Company follows FASB Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASC 842”), The determination of whether an arrangement is or contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. The Company elected not to separate non-lease components from lease components if the lease agreements consist of both lease and non-lease components. However, for all of the Company’s long-term lease agreements, lease payment do not contain the consideration for the non-lease component and the non-lease component has its own price and is paid separately. So, the Company calculates the right-of-use (“ROU”) and lease liabilities by using the lease payment only for the use of the underlying leased assets and has no need to allocate the lease payment between the lease and non-lease component. Under a lease, the lessees are required to recognize ROU assets and lease liabilities. ROU assets represent the Company’s right to use an underlying asset for the lease term and are recognized as the amount of the lease liabilities, adjusted for any prepaid or accrued lease payments, net of lease incentives received, unam