Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 23

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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, 2025 and 2024, depreciation expense totaled $324,606 and $365,997, respectively. Of these amounts,
$208,731 and $228,550, respectively, are reflected in cost of revenues.

Following
is a summary of fixed assets held under finance leases as of September 30, 2025 and June 30, 2025:

 SCHEDULE OF FIXED ASSETS HELD UNDER CAPITAL LEASES

    As of
                                                                               September 30, 2025  
    As of
                                                                               June 30, 2025 
  
    Vehicles 
    $143,494  
    $145,197 
  
    Total 
     143,494  
     145,197 
  
    Less: Accumulated Depreciation
    - Net 
     (55,889) 
     (47,807)
  
    Fixed assets held under
    capital leases, Total 
    $87,605  
    $97,390 

Finance
lease term and discount rate were as follows:

 SCHEDULE OF FINANCE LEASE TERM

    As of  
    As of 

    September
    30, 2025  
    June
    30, 2025 

    Weighted
    average remaining lease term - Finance leases 
     1.5
                                            Years  
     1.75
                                            Years 

    Weighted average discount
    rate - Finance leases 
     11.3% 
     11.3%

    Page 18

NETSOL
TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

September
30, 2025

(Unaudited)

NOTE
10 - LEASES

The
Company leases certain office space, office equipment and autos with remaining lease terms of one year to 10 years under leases classified
as financing and operating. For certain leases, the Company has options to extend the lease term for additional periods ranging from
one year to 10 years.

The
Company treats a contract as a lease when the contract conveys the right to use a physically distinct asset for a period of time in exchange
for consideration, or the Company directs the use of the asset and obtains substantially all the economic benefits of the asset. These
leases are recorded as right-of-use (“ROU”) assets and lease obligation liabilities for leases with terms greater than 12
months. ROU assets