Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 24

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
---
 assets (revenues in excess of billings), or contract liabilities (unearned revenue) on the Company’s Consolidated Balance
Sheets. The Company records revenues in excess of billings when the Company has transferred goods or services but does not yet have the
right to consideration. The Company records unearned revenue when the Company has received or has the right to receive consideration
but has not yet transferred goods or services to the customer.

The
revenues in excess of billings are transferred to receivables when the rights to consideration become unconditional, usually upon completion
of a milestone.

The
Company’s revenues in excess of billings and unearned revenue are as follows:

 SCHEDULE OF REVENUES IN EXCESS OF BILLINGS AND DEFERRED REVENUE

    As
    of  
    As
    of 

    March
    31, 2025  
    June
    30, 2024 

    Revenues
    in excess of billings 
    $15,424,896  
    $13,638,547 

    Unearned
    revenue 
    $2,705,414  
    $8,752,153 

The
Company’s unearned revenue reconciliation is as follows:

 SCHEDULE OF UNEARNED REVENUE RECONCILIATION

    Unearned
    Revenue 
  
    Balance
    at June 30, 2024 
    $8,752,153 
  
    Invoiced 
     16,253,159 
  
    Revenue
    Recognized 
     (22,215,692)
  
    Adjustments 
     (84,206)
  
    Balance
    at March 31, 2025 
    $2,705,414 

During
the three and nine months ended March 31, 2025, the Company recognized revenue of $549,933 and $8,236,336, that was included in the unearned
revenue balance at the beginning of the period. All other activity in unearned revenue is due to the timing of invoicing in relation
to the timing of revenue recognition.

    Page 17

NETSOL
                                            TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

March
31, 2025

(Unaudited)

Revenue
allocated to the remaining performance obligations represents the transaction price allocated to the performance obligations that are
unsatisfied, or