NETSOL Technologies, Inc. Quarterly report pursuant to Section 13 or 15(d)

Accounting Policies (Tables)

9 Months Ended

Mar. 31, 2021

The Company’s financial assets that were measured at fair value on a recurring basis as of March 31, 2021, were as follows:

	Level 1		Level 2		Level 3		Total Assets
Revenues in excess of billings - long term	$	-	$	-	$	946,184	$	946,184
Total	$	-	$	-	$	946,184	$	946,184

The Company’s financial assets that were measured at fair value on a recurring basis as of June 30, 2020, were as follows:

	Level 1		Level 2		Level 3		Total Assets
Revenues in excess of billing - long term	$	-	$	-	$	1,300,289	$	1,300,289
Total	$	-	$	-	$	1,300,289	$	1,300,289

The reconciliation from June 30, 2020 to March 31, 2021 is as follows:

	Revenues in excess of billings - long term			Fair value discount			Total
Balance at June 30, 2020	$	1,341,575		$	(41,286	)	$	1,300,289
Additions		1,023,634			(78,124	)		945,510
Amortization during the period		-			43,617			43,617
Transfers to short term		(1,341,575	)		-			(1,341,575	)
Effect of Translation Adjustment		(1,723	)		66			(1,657	)
Balance at March 31, 2021	$	1,021,911		$	(75,727	)	$	946,184

The following table presents the impact of adopting ASC Topic 326 as of July 1, 2020:

	Adjustment
	to Adopt
Asset Classification	ASC Topic 326
Allowance for credit losses - accounts receivable	$	109,486
Allowance for credit losses - accounts receivable - related party		1,282,505
Allowance for credit losses - revenue in excess of billings - related party		8,163
Allowance for credit losses - convertible notes receivable - related party		4,250,000
Allowance for credit losses - other current assets		1,134,146
	$	6,784,300