Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 28

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 28
---
 December 31, 2024  
    June 30, 2024 
  
    Vehicles 
    $133,897  
    $154,718 
  
    Total 
     133,897  
     154,718 
  
    Less:  Accumulated Depreciation - Net 
     (27,478) 
     (25,078)
  
    Fixed assets held under
    capital leases, Total 
    $106,419  
    $129,640 

Finance lease term and discount
rate were as follows:

SCHEDULE OF FINANCE LEASE TERM 

    As of  
    As of 

    December 31, 2024  
    June 30, 2024 

    Weighted average remaining lease term - Finance leases 
      2.25 Years  
      2.75 Years 

    Weighted average discount rate - Finance leases 
     11.3% 
     11.3%

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 represent the Company’s right to use an underlying asset for the entirety of the lease term. Lease liabilities
represent the Company’s obligation to make payments over the life of the lease. A ROU asset and a lease liability are recognized at commencement
of the lease based on the present value of the lease payments over the life of the lease. Initial direct costs are included as part of
the ROU asset upon commencement of the lease. Since the interest rate implicit in a lease is generally not readily determinable for the
operating leases, the Company uses an incremental borrowing rate to determine the present value of the lease payments. The incremental
borrowing rate represents the rate of interest the Company would have to pay to borrow on a collateralized