Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1317

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7
Chunk 1317
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”)
NetSol Technologies Australia Pty Ltd. (“Australia”)
NetSol Technologies Europe Limited (“NTE”)

NetSol
Technologies (Beijing) Co. Ltd. (“NetSol Beijing”)

Tianjin
NuoJinZhiCheng Co., Ltd (“Tianjin”)

Ascent
Europe Ltd. (“AEL”)

Virtual
Lease Services Holdings Limited (“VLSH”)
Virtual Lease Services Limited (“VLS”)
Virtual Lease Services (Ireland) Limited (“VLSIL”)

Majority-owned
Subsidiaries
NetSol Technologies, Ltd. (“NetSol PK”)
NetSol Innovation (Private) Limited (“NetSol Innovation”)
NetSol Institute of Artificial Intelligence (Private) Limited (“NIAI”)

NETSOL
Ascent Middle East Computer Equipment Trading LLC (“Namecet”)

NetSol
Technologies Thailand Limited (“NetSol Thai”)

OTOZ,
Inc. (“OTOZ®”)

OTOZ
(Thailand) Limited (“OTOZ®  Thai”)

The
Company consolidates any variable interest entities of which it is the primary beneficiary. Equity investments through which the Company
exercises significant influence over but does not control the investee and is not the primary beneficiary of the investee’s activities
are accounted for using the equity method. Investments through which the Company is not able to exercise significant influence over the
investee, and which do not have readily determinable fair values are accounted for under the cost method. All material inter-company
accounts have been eliminated in the consolidation.

    F-10

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

Basis
of Presentation

The
accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United
States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

Use
of Estimates

The
preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. The areas requiring significant estimates are the measurement of progress toward completion of
long-term software implementation projects, the allocation of the transaction price