Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 93

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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 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 partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in
future periods. Contracted but unsatisfied performance obligations were approximately $16,000,000 as of March 31, 2025, of which the
Company estimates to recognize approximately $15,000,000 in revenue over the next 12 months and the remainder over an estimated 3 years
thereafter. Actual revenue recognition depends in part on the timing of software modules installed at various customer sites. Accordingly,
some factors that affect the Company’s revenue, such as the availability and demand for modules within customer geographic locations,
is not entirely within the Company’s control. In instances where the timing of revenue recognition differs from the timing of