Company: NTCL
Filing Date: 2025-10-20
Form Type: F-1
Source: 0001104659-25-100526
Chunk: 282

Company: NetClass Technology Inc
Filing Date: 2025-10-20
Form: F-1
Chunk 282
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 acceptance of the service. The Company has elected the practical expedient to not assess whether a significant financing component exists if the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service is one year or less.

Contract balances

Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced and revenues recognized prior to invoicing when the Company has satisfied the Company’s performance obligation and has the unconditional rights to payment. Unearned revenues consist of payments received or awards to customers related to unsatisfied performance obligation at the end of the period. Advance from customers of $, $ and $ as of September 30, 2023, 2022 and 2021 were recognized as revenues in the years ended September 30, 2024, 2023 and 2022, respectively. All unsatisfied performance obligations will be performed within the next 12 months. In certain application development service contracts, it contains a significant financial component, which represents a financial service obligation to the customers.

Disaggregation of revenue

For the years ended September 30, 2024, 2023 and 2022, the disaggregation of revenue by major revenue stream is as follows:

| ​                                | ​ 
 ​ | ​ |          ​ 
       2024 | ​ | ​ |          ​ 
       2023 | ​ | ​ |         ​ 
      2022 |
|:---------------------------------|:--|:--|-----------:|:--|:--|-----------:|:--|:--|----------:|
| Application development services | ​ | $ |  7,798,865 | ​ | $ |  8,305,939 | ​ | $ | 3,380,284 |
| Subscription service             |   | ​ |  2,288,806 |   | ​ |  2,776,175 |   | ​ | 5,877,323 |
| Finance income                   |   | ​ |     13,976 |   | ​ |      7,414 |   | ​ |         — |
| Total                            | ​ | $ | 10,101,647 | ​ | $ | 11,089,528 | ​ | $ | 9,257,607 |

Advertising expenditures

Advertising expenditures are expensed as incurred for the periods presented. Advertising expenditures are included in selling expenses. For the years ended September 30,