Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 18

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 data conversion and building non-complex interfaces to allow the software to operate in integrated environments. The Company recognizes
revenue for time-and-materials arrangements as the services are performed. In fixed fee arrangements, revenue is recognized as services
are performed as measured by costs incurred to date, compared to total estimated costs to complete the services project. Management applies
judgment when estimating project status and the costs necessary to complete the services projects. Several internal and external factors
can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes.
Services are generally invoiced upon milestones in the contract or upon consumption of the hourly resources and payments are typically
due 30 days after invoice.

BPO and Internet Services

Revenue
from BPO services is recognized based on the stage of completion which is measured by reference to labor hours incurred to date as a
percentage of total estimated labor hours for each contract. Internet services are invoiced either monthly, quarterly, or half yearly
in advance to the customers and revenue is recognized ratably overtime on a monthly basis.

Disaggregated Revenue

The Company
disaggregates revenue from contracts with customers by category -- core and non-core, as it believes it best depicts how the nature,
amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

    Page 14

NETSOL
TECHNOLOGIES, INC. 

Notes
to Condensed Consolidated Financial Statements 

December
31, 2024 

(Unaudited)

The Company’s disaggregated
revenue by category is as follows: 

SCHEDULE OF DISAGGREGATED REVENUE BY CATEGORY

    2024  
    2023  
    2024  
    2023 

    For the Three Months
Ended December 31,  
    For the Six Months
Ended December 31, 

    2024  
    2023  
    2024  
    2023 
  
    Core: 

    License 
    $72,688  
    $2,990,453  
    $73,917  
    $4,270,902 
  
    Subscription and support 
     8,642,629  
     6,827,781  
     16,835,100  
     13,340,024 
  
    Services 
     5,872,590