NETSOL Technologies, Inc. Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2022

Category		Estimated Useful Life

Computer equipment and software		3 to 5 Years
Office furniture and equipment		5 to 10 Years
Building		20 Years
Autos		5 Years
Assets under capital leases		3 to 10 Years
Improvements		5 to 10 Years

Our financial assets that are measured at fair value on a recurring basis as of June 30, 2022 are as follows:

	Level 1		Level 2		Level 3		Total Assets
Revenues in excess of billings - long term	$	-	$	-	$	853,601	$	853,601
Total	$	-	$	-	$	853,601	$	853,601

Our financial assets that are measured at fair value on a recurring basis as of June 30, 2021, are as follows:

	Level 1		Level 2		Level 3		Total Assets
Revenues in excess of billings - long term	$	-	$	-	$	957,603	$	957,603
Total	$	-	$	-	$	957,603	$	957,603

The reconciliation for the years ended June 30, 2022 and 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		-			53,119			53,119
Transfers to short term		(1,341,575	)		-			(1,341,575	)
Effect of Translation Adjustment		748			(488	)		260
Balance at June 30, 2021	$	1,024,382		$	(66,779	)	$	957,603
Amortization during the period		-			38,005			38,005
Transfers to short term		(129,352	)		-			(129,352	)
Effect of Translation Adjustment		(13,090	)		435			(12,655	)
Balance at June 30, 2022	$	881,940		$	(28,339	)	$	853,601