Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 125

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 125
---
 determined by analyzing the expected present value of future cash flows. If the carrying value of the reporting
unit continues to exceed its fair value, the fair value of the reporting unit’s goodwill is calculated and an impairment loss equal
to the excess is recorded.

Recent
Accounting Pronouncement

See
Note 2 “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in Item 8 of Part
II of this Annual Report on Form 10-K, for a full description of recent accounting pronouncements, including the expected dates of adoption.

18

RESULTS
OF OPERATIONS 

THE
YEAR ENDED JUNE 30, 2025 COMPARED TO THE YEAR ENDED JUNE 30, 2024 

The
following table sets forth the items in our consolidated statement of operations for the years ended June 30, 2025 and 2024 as a percentage
of revenues.

    For the Years

    Ended June 30,

    2025 
    % 
    2024 
    %
  
    Net Revenues: 

    License fees 
    $598,633  
     0.9% 
    $5,449,991  
     8.9%
  
    Subscription and support 
     32,934,648  
     49.8% 
     27,952,768  
     45.5%
  
    Services 
     32,554,948  
     49.3% 
     27,990,332  
     45.6%
  
    Total net revenues 
     66,088,229  
     100.0% 
     61,393,091  
     100.0%

    Cost of revenues 
     33,513,697  
     50.7% 
     32,108,221  
     52.3%
  
    Gross profit 
     32,574,532  
     49.3% 
     29,284,870  
     47.7%
  
    Operating expenses: 

    Selling, general and administrative 
     27,796,936  
     42.1% 
     24,388,714  
     39.7%
  
    Research and development cost 
     1,275,878  
     1.9% 
     1,402,601