Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 224

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 224
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umption. Historical volatility was calculated using the daily closing prices of the Company’s common stock over a period commensurate
with the expected term of the share options. The Company determined that historical volatility was an appropriate measure of future expectations,
as it reflects the stock’s past performance and market conditions. No significant adjustments were made to historical volatility,
as the Company believes it provides a reasonable estimate of expected volatility for the purposes of option valuation.

NOTE
16 – RETIREMENT PLANS 

The
Company and its subsidiaries have varying defined contribution plans based on country-specific laws. Employer contributions vary by subsidiary
from 0% up to 8% taking the form in some jurisdictions of employee matching contributions and in others direct employer contributions
mandated by local law. During the years ended June 30, 2025 and 2024, the Company contributed $1,363,234 and $1,156,977, respectively,
to these plans.

    F-34

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

NOTE
17 – SEGMENT INFORMATION AND GEOGRAPHIC AREAS 

The
Company has identified three segments for its products and services: North America, Europe, and Asia-Pacific. The reportable segments
are business units located in different global regions. Each business unit provides similar products and services: license fees for leasing
and asset-based software, subscription and support fees, and implementation and IT consulting services. Separate management of each segment
is required because each business unit is subject to different operational issues and strategies due to its particular regional location.
The Company’s chief operating decision maker (“CODM”) evaluates performance and allocates resources based on gross
profit and income from operations. The Company has designated its Chief Executive Officer as the CODM.

Segment
assets include all assets attributable to operations within the respective geographic regions, including cash, accounts receivable, revenue
in excess of billings, and property, plant, and equipment. Corporate assets, which primarily consist of cash and cash equivalents, goodwill,
and assets associated with the Company’s corporate headquarters, are not allocated to the geographic segments and are shown separately.

The
accounting policies of the reportable segments are the same as those described in Note 1, “Summary of Significant Accounting Policies.”
Intersegment revenues are eliminated in consolidation.

Prior
year results have been restated to conform to the current year presentation, reflecting the use of gross profit and income from operations