Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1338

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7
Chunk 1338
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The
Company reviews the impairment of ROU assets consistent with the approach applied for 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.

    F-25

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

Supplemental
balance sheet information related to leases was as follows:

 SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASE

    As
    of  
    As
    of 

    June
    30, 2025  
    June
    30, 2024 
  
    Assets 

    Operating
    lease assets, net 
    $809,513  
    $1,328,624 

    Liabilities 

    Current 

    Operating 
    $433,242  
    $608,202 

    Operating, Current 
    $433,242  
    $608,202 
  
    Non-current 

    Operating 
     333,374  
     688,749 

    Operating, Noncurrent 
     333,374  
     688,749 
  
    Total
    Lease Liabilities 
    $766,616  
    $1,296,951 

The
components of lease cost were as follows:

 SCHEDULE OF COMPONENTS OF LEASE COST

    2025