Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1529

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 1529
---
 2024 
  
    Core: 

    License 
    $598,633  
    $5,449,991 
  
    Subscription
    and support 
     32,934,648  
     27,952,768 
  
    Services 
     28,921,965  
     22,526,010 
  
    Total
    core revenue, net 
     62,455,246  
     55,928,769 

    Non-Core: 

    Services 
     3,632,983  
     5,464,322 
  
    Total
    non-core revenue, net 
     3,632,983  
     5,464,322 

    Total
    net revenue 
    $66,088,229  
    $61,393,091 

Significant
Judgments

More
judgments and estimates are required under Topic 606 than were required under Topic 605. Due to the complexity of
certain contracts, the actual revenue recognition treatment required under Topic 606 for the Company’s arrangements may be
dependent on contract-specific terms and may vary in some instances.

Judgment
is required to determine the SSP for each distinct performance obligation. The Company rarely licenses or sells products on a stand-alone
basis, so the Company is required to estimate the range of SSPs for each performance obligation. In instances where SSP is not directly
observable because the Company does not sell the license, product or service separately, the Company determines the SSP using
information that may include market conditions and other observable inputs. In making these judgments, the Company analyzes
various factors, including its pricing methodology and consistency, size of the arrangement, length of term, customer demographics and
overall market and economic conditions. Based on these results, the estimated SSP is set for each distinct product or service delivered
to customers.

The
most significant inputs involved in the Company’s revenue recognition policies are: The (1) stand-alone selling prices of the Company’s
software license, and the (2) the method of recognizing revenue for installation/customization, and other services.

The
stand-alone selling price of the licenses was measured primarily through an analysis of pricing that management evaluated when quoting
prices to customers. Although the Company has no history of selling its software separately from post-contract support and other services,
the Company does have historical experience