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

Accounting Policies (Tables)

3 Months Ended

Sep. 30, 2020

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 September 30, 2020 is as follows:

	Revenues in excess of billings - long term			Fair value discount			Total
Balance at June 30, 2019	$	1,380,631		$	(99,139	)	$	1,281,492
Amortization during the period		-			55,344			55,344
Effect of Translation Adjustment		(39,056	)		2,509			(36,547	)
Balance at June 30, 2020	$	1,341,575		$	(41,286	)	$	1,300,289
Transfers to short term		(1,341,575	)		41,286			(1,300,289	)
Balance at September 30, 2020	$	-		$	-		$	-

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