Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 21

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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-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 15

NETSOL
                                            TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

March
31, 2025

(Unaudited)

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

 SCHEDULE OF DISAGGREGATED REVENUE BY CATEGORY

    2025  
    2024  
    2025  
    2024 

    For the Three Months  
    For the Nine Months 

    Ended
    March 31,  
    Ended
    March 31, 

    2025  
    2024  
    2025  
    2024 
  
    Core: 

    License 
    $1,198  
    $558,340  
    $75,115  
    $4,829,242 
  
    Subscription and support 
     7,888,360  
     7,140,358  
     24,723,460  
     20,480,382 
  
    Services 
     8,265,745  
     6,477,