NetSol (NTWK) 10-Q 11 May 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Mar. 31, 2023	May 05, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--06-30
Entity File Number	0-22773
Entity Registrant Name	NETSOL TECHNOLOGIES, INC.
Entity Central Index Key	0001039280
Entity Tax Identification Number	95-4627685
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	16000 Ventura Blvd.,
Entity Address, Address Line Two	Suite 770
Entity Address, City or Town	Encino
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91436
City Area Code	(818)
Local Phone Number	222-9195
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	NTWK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,299,011

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Current assets:
Cash and cash equivalents	$ 15,259,497	$ 23,963,797
Accounts receivable, net of allowance of $232,004 and $166,231	9,223,484	8,669,202
Revenues in excess of billings, net of allowance of $43,334 and $136,976	13,741,884	14,571,776
Other current assets	2,599,532	2,223,361
Total current assets	40,824,397	49,428,136
Revenues in excess of billings, net - long term		853,601
Property and equipment, net	6,871,036	9,382,624
Right of use of assets - operating leases	1,102,729	969,163
Long term investment	1,066,878	1,059,368
Other assets	425	25,546
Intangible assets, net	381,878	1,587,670
Goodwill	9,302,524	9,302,524
Total assets	59,549,867	72,608,632
Current liabilities:
Accounts payable and accrued expenses	7,098,206	6,813,541
Current portion of loans and obligations under finance leases	5,969,044	8,567,145
Current portion of operating lease obligations	421,223	548,678
Unearned revenue	4,167,655	4,901,562
Total current liabilities	17,656,128	20,830,926
Loans and obligations under finance leases; less current maturities	215,243	476,223
Operating lease obligations; less current maturities	651,443	447,260
Total liabilities	18,522,814	21,754,409
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par value; 500,000 shares authorized;
Common stock, $.01 par value; 14,500,000 shares authorized; 12,238,042 shares issued and 11,299,011  outstanding as of March 31, 2023 12,196,570 shares issued and 11,257,539  outstanding as of June 30, 2022	122,382	121,966
Additional paid-in-capital	128,536,955	128,218,247
Treasury stock (at cost, 939,031 shares as of March 31, 2023 and June 30, 2022)	(3,920,856)	(3,920,856)
Accumulated deficit	(39,821,470)	(39,652,438)
Other comprehensive loss	(47,192,994)	(39,363,085)
Total NetSol stockholders’ equity	37,724,017	45,403,834
Non-controlling interest	3,303,036	5,450,389
Total stockholders’ equity	41,027,053	50,854,223
Total liabilities and stockholders’ equity	$ 59,549,867	$ 72,608,632

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 232,004	$ 166,231
Revenues in excess of billings, allowance	$ 43,334	$ 136,976
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	500,000	500,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	14,500,000	14,500,000
Common stock, shares issued	12,238,042	12,196,570
Common stock, shares outstanding	11,299,011	11,257,539
Treasury stock, shares	939,031	939,031

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Net Revenues:
Total net revenues	$ 13,506,389	$ 14,809,826	$ 38,602,866	$ 43,703,549
Cost of revenues:
Salaries and consultants	6,453,814	6,756,898	19,482,720	18,081,225
Travel	724,431	256,730	1,752,074	753,698
Depreciation and amortization	602,829	741,587	1,950,156	2,236,190
Other	1,020,286	1,220,041	3,318,427	3,712,256
Total cost of revenues	8,801,360	8,975,256	26,503,377	24,783,369
Gross profit	4,705,029	5,834,570	12,099,489	18,920,180
Operating expenses:
Selling and marketing	1,643,853	2,074,873	5,413,492	5,502,028
Depreciation and amortization	180,137	206,346	569,313	633,481
General and administrative	3,509,212	3,841,655	10,745,031	11,548,097
Research and development cost	302,262	251,001	1,244,793	761,621
Total operating expenses	5,635,464	6,373,875	17,972,629	18,445,227
Income (loss) from operations	(930,435)	(539,305)	(5,873,140)	474,953
Other income and (expenses)
Gain (loss) on sale of assets	(84,838)	8,770	(56,494)	(181,955)
Interest expense	(188,137)	(85,916)	(512,110)	(277,737)
Interest income	263,794	364,161	1,005,557	1,123,547
Gain on foreign currency exchange transactions	5,385,591	499,516	7,358,519	2,684,680
Share of net loss from equity investment	2,377	(76,798)	7,510	(317,581)
Other income (expense)	21,897	(30,296)	113,877	(7,599)
Total other income (expenses)	5,400,684	679,437	7,916,859	3,023,355
Net income before income taxes	4,470,249	140,132	2,043,719	3,498,308
Income tax provision	(227,718)	(157,604)	(641,122)	(526,737)
Net income (loss)	4,242,531	(17,472)	1,402,597	2,971,571
Non-controlling interest	(1,697,908)	(260,998)	(1,571,629)	(1,655,287)
Net income (loss) attributable to NetSol	$ 2,544,623	$ (278,470)	$ (169,032)	$ 1,316,284
Net income (loss) per share:
Basic	$ 0.23	$ (0.02)	$ (0.01)	$ 0.12
Diluted	$ 0.23	$ (0.02)	$ (0.01)	$ 0.12
Weighted average number of shares outstanding
Basic	11,283,954	11,249,606	11,270,466	11,249,449
Diluted	11,283,954	11,249,606	11,270,466	11,249,449
License [Member]
Net Revenues:
Total net revenues	$ 1,982,985	$ 1,620,827	$ 2,248,829	$ 3,586,874
Subscription And Support [Member]
Net Revenues:
Total net revenues	6,656,082	6,554,540	19,175,585	22,159,798
Service [Member]
Net Revenues:
Total net revenues	$ 4,867,322	$ 6,634,459	$ 17,178,452	$ 17,956,877

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net income (loss)	$ 2,544,623	$ (278,470)	$ (169,032)	$ 1,316,284
Other comprehensive income (loss):
Translation adjustment	(7,628,982)	(2,269,229)	(11,428,326)	(7,020,620)
Translation adjustment attributable to non-controlling interest	2,447,328	464,452	3,598,417	2,148,695
Net translation adjustment	(5,181,654)	(1,804,777)	(7,829,909)	(4,871,925)
Comprehensive income (loss) attributable to NetSol	$ (2,637,031)	$ (2,083,247)	$ (7,998,941)	$ (3,555,641)

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Jun. 30, 2021	$ 121,816	$ 129,018,826	$ (3,820,750)	$ (38,801,282)	$ (31,868,481)	$ 7,215,473	$ 61,865,602
Beginning balance, shares at Jun. 30, 2021	12,181,585
Common stock issued for: Services	$ 20	11,989					12,009
Common stock issued for services. shares	1,985
Foreign currency translation adjustment					(2,145,405)	(1,138,991)	(3,284,396)
Net income				187,969		362,526	550,495
Subsidiary common stock issued for: -Services		167				(167)
Purchase of treasury shares			(100,106)				(100,106)
Ending balance, value at Sep. 30, 2021	$ 121,836	129,030,982	(3,920,856)	(38,613,313)	(34,013,886)	6,438,841	59,043,604
Ending balance, shares at Sep. 30, 2021	12,183,570
Beginning balance, value at Jun. 30, 2021	$ 121,816	129,018,826	(3,820,750)	(38,801,282)	(31,868,481)	7,215,473	61,865,602
Beginning balance, shares at Jun. 30, 2021	12,181,585
Net income							2,971,571
Ending balance, value at Mar. 31, 2022	$ 121,916	129,084,786	(3,920,856)	(37,484,998)	(36,740,406)	6,721,898	57,782,340
Ending balance, shares at Mar. 31, 2022	12,191,570
Beginning balance, value at Sep. 30, 2021	$ 121,836	129,030,982	(3,920,856)	(38,613,313)	(34,013,886)	6,438,841	59,043,604
Beginning balance, shares at Sep. 30, 2021	12,183,570
Common stock issued for: Services	$ 25	9,875					9,900
Common stock issued for services. shares	2,500
Fair value of subsidiary options issued		1,164					1,164
Foreign currency translation adjustment					(921,743)	(545,252)	(1,466,995)
Net income				1,406,785		1,031,763	2,438,548
Ending balance, value at Dec. 31, 2021	$ 121,861	129,042,021	(3,920,856)	(37,206,528)	(34,935,629)	6,925,352	60,026,221
Ending balance, shares at Dec. 31, 2021	12,186,070
Common stock issued for: Services	$ 55	22,170					22,225
Common stock issued for services. shares	5,500
Fair value of subsidiary options issued		20,595					20,595
Foreign currency translation adjustment					(1,804,777)	(464,452)	(2,269,229)
Net income				(278,470)		260,998	(17,472)
Ending balance, value at Mar. 31, 2022	$ 121,916	129,084,786	(3,920,856)	(37,484,998)	(36,740,406)	6,721,898	57,782,340
Ending balance, shares at Mar. 31, 2022	12,191,570
Beginning balance, value at Jun. 30, 2022	$ 121,966	128,218,247	(3,920,856)	(39,652,438)	(39,363,085)	5,450,389	50,854,223
Beginning balance, shares at Jun. 30, 2022	12,196,570
Common stock issued for: Services	$ 127	39,623					39,750
Common stock issued for services. shares	12,660
Fair value of subsidiary options issued		42,084					42,084
Foreign currency translation adjustment					(2,918,050)	(1,233,469)	(4,151,519)
Net income				(620,729)		182,758	(437,971)
Adjustment in APIC for change in subsidiary shares to non-controlling interest		120,565				(120,565)
Ending balance, value at Sep. 30, 2022	$ 122,093	128,420,519	(3,920,856)	(40,273,167)	(42,281,135)	4,279,113	46,346,567
Ending balance, shares at Sep. 30, 2022	12,209,230
Beginning balance, value at Jun. 30, 2022	$ 121,966	128,218,247	(3,920,856)	(39,652,438)	(39,363,085)	5,450,389	50,854,223
Beginning balance, shares at Jun. 30, 2022	12,196,570
Net income							1,402,597
Ending balance, value at Mar. 31, 2023	$ 122,382	128,536,955	(3,920,856)	(39,821,470)	(47,192,994)	3,303,036	41,027,053
Ending balance, shares at Mar. 31, 2023	12,238,042
Beginning balance, value at Sep. 30, 2022	$ 122,093	128,420,519	(3,920,856)	(40,273,167)	(42,281,135)	4,279,113	46,346,567
Beginning balance, shares at Sep. 30, 2022	12,209,230
Common stock issued for: Services	$ 138	39,612					39,750
Common stock issued for services. shares	13,755
Fair value of subsidiary options issued		24,583					24,583
Foreign currency translation adjustment					269,795	82,380	352,175
Net income				(2,092,926)		(309,037)	(2,401,963)
Ending balance, value at Dec. 31, 2022	$ 122,231	128,484,714	(3,920,856)	(42,366,093)	(42,011,340)	4,052,456	44,361,112
Ending balance, shares at Dec. 31, 2022	12,222,985
Common stock issued for: Services	$ 151	39,599					39,750
Common stock issued for services. shares	15,057
Fair value of subsidiary options issued		12,642					12,642
Foreign currency translation adjustment					(5,181,654)	(2,447,328)	(7,628,982)
Net income				2,544,623		1,697,908	4,242,531
Ending balance, value at Mar. 31, 2023	$ 122,382	$ 128,536,955	$ (3,920,856)	$ (39,821,470)	$ (47,192,994)	$ 3,303,036	$ 41,027,053
Ending balance, shares at Mar. 31, 2023	12,238,042

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 1,402,597	$ 2,971,571
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,519,469	2,869,671
Provision for bad debts	7,648	6,897
Share of net (gain) loss from investment under equity method	(7,510)	317,581
(Gain) loss on sale of assets	56,494	181,955
Stock based compensation	198,559	78,225
Changes in operating assets and liabilities:
Accounts receivable	(1,855,899)	(3,404,247)
Revenues in excess of billing	240,324	(385,971)
Other current assets	(621,731)	53,173
Accounts payable and accrued expenses	1,321,289	14,918
Unearned revenue	(696,621)	2,822,178
Net cash provided by operating activities	2,564,619	5,525,951
Cash flows from investing activities:
Purchases of property and equipment	(1,575,059)	(1,680,856)
Sales of property and equipment	153,402	321,251
Net cash used in investing activities	(1,421,657)	(1,359,605)
Cash flows from financing activities:
Purchase of treasury stock		(100,106)
Proceeds from bank loans	270,292	312,467
Payments on finance lease obligations and loans - net	(787,641)	(1,045,464)
Net cash used in financing activities	(517,349)	(833,103)
Effect of exchange rate changes	(9,329,913)	(6,465,085)
Net decrease in cash and cash equivalents	(8,704,300)	(3,131,842)
Cash and cash equivalents at beginning of the period	23,963,797	33,705,154
Cash and cash equivalents at end of period	15,259,497	30,573,312
Cash paid during the period for:
Interest	378,720	332,239
Taxes	706,658	694,161
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Shares issued to vendor for services received		$ 19,525

BASIS OF PRESENTATION AND PRINC

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION	9 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION	NOTE 1 - BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The Company designs, develops, markets, and exports proprietary software products to customers in the automobile financing and leasing, banking, and financial services industries worldwide. The Company also provides system integration, consulting, and IT products and services in exchange for fees from customers. The consolidated condensed interim financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended June 30, 2022. The Company follows the same accounting policies in preparation of interim reports. Results of operations for the interim periods are not indicative of annual results. The accompanying consolidated financial statements include the accounts of the Company as follows: Wholly owned Subsidiaries NetSol Technologies Americas, Inc. (“NTA”) NetSol Connect (Private), Ltd. (“Connect”) NetSol Technologies Australia Pty Ltd. (“Australia”) NetSol Technologies Europe Limited (“NTE”) NTPK (Thailand) Co. Limited (“NTPK Thailand”) NetSol Technologies (Beijing) Co. Ltd. (“NetSol Beijing”) Tianjin NuoJinZhiCheng Co., Ltd (“Tianjin”) Ascent Europe Ltd. (“AEL”) Virtual Lease Services Holdings Limited (“VLSH”) Virtual Lease Services Limited (“VLS”) Virtual Lease Services (Ireland) Limited (“VLSIL”) Majority-owned Subsidiaries NetSol Technologies, Ltd. (“NetSol PK”) NetSol Innovation (Private) Limited (“NetSol Innovation”) NETSOL Ascent Middle East Computer Equipment Trading LLC (“Namecet”) NetSol Technologies Thailand Limited (“NetSol Thai”) Otoz, Inc. (“Otoz”) Otoz (Thailand) Limited (“Otoz Thai”) NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited)

ACCOUNTING POLICIES

ACCOUNTING POLICIES	9 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
ACCOUNTING POLICIES	NOTE 2 – ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The areas requiring significant estimates are provision for doubtful accounts, provision for taxation, useful life of depreciable assets, useful life of intangible assets, contingencies, assumptions used to determine the net present value of operating lease liabilities, and estimated contract costs. The estimates and underlying assumptions are reviewed on an ongoing basis. Actual results could differ from those estimates. Concentration of Credit Risk Cash includes cash on hand and demand deposits in accounts maintained within the United States as well as in foreign countries. Certain financial instruments, which subject the Company to concentration of credit risk, consist of cash and restricted cash. The Company maintains balances at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation insured limits for the banks located in the United States. Balances at financial institutions within certain foreign countries are not covered by insurance except balances maintained in China are insured for RMB 500,000 72,780 85,000 104,938 13,089,660 22,758,963 The Company’s operations are carried out globally. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments of each country and by the general state of the country’s economy. The Company’s operations in each foreign country are subject to specific considerations and significant risks not typically associated with companies in economically developed nations. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Fair Value of Financial Instruments The Company applies the provisions of Accounting Standards Codification (“ASC”) 820-10, “Fair Value Measurements and Disclosures.” The three levels of valuation hierarchy are defined as follows: Level 1: Valuations consist of unadjusted quoted prices in active markets for identical assets and liabilities and has the highest priority. Level 2: Valuations rely on quoted prices in markets that are not active or observable inputs over the full term of the asset or liability. Level 3: Valuations are based on prices or third party or internal valuation models that require inputs that are significant to the fair value measurement and are less observable and thus have the lowest priority. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) The Company did not have any financial assets that were measured at fair value on a recurring basis at March 31, 2023. The Company’s financial assets that were measured at fair value on a recurring basis as of June 30, 2022, were as follows: SCHEDULE OF FAIR VALUE OF FINANCIAL ASSETS MEASURED ON RECURRING BASIS Level 1 Level 2 Level 3 Total Assets Revenues in excess of billings - long term $ - $ - $ 853,601 $ 853,601 Total $ - $ - $ 853,601 $ 853,601 The reconciliation from June 30, 2022 to March 31, 2023 is as follows: SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS RECONCILIATION Revenues in excess of billings - long term Fair value discount Total Balance at June 30, 2022 $ 881,940 $ (28,339 ) $ 853,601 Amortization during the period - 28,029 28,029 Transfers to short term (890,794 ) - (890,794 ) Effect of Translation Adjustment 8,854 310 9,164 Balance at March 31, 2023 $ - $ - $ - Management analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity” “Derivatives and Hedging.” Recent Accounting Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. ASU 2021-08 is effective for annual periods beginning after December 15, 2022, and interim periods within those years, with early adoption permitted. The Company does not expect the standard to have a material effect on its consolidated financial statements. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited)

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	NOTE 3 – REVENUE RECOGNITION The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer; ● Identification of the performance obligations in the contract; ● Determination of the transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when, or as, the Company satisfies a performance obligation. The Company records the amount of revenue and related costs by considering whether the entity is a principal (gross presentation) or an agent (net presentation) by evaluating the nature of its promise to the customer. Revenue is presented net of sales, value-added and other taxes collected from customers and remitted to government authorities. The Company has two primary revenue streams: core revenue and non-core revenue. Core Revenue The Company generates its core revenue from the following sources: (1) software licenses, (2) services, which include implementation and consulting services, and (3) subscription and support, which includes post contract support, of its enterprise software solutions for the lease and finance industry. The Company offers its software using the same underlying technology via two models: a traditional on-premises licensing model and a subscription model. The on-premises model involves the sale or license of software on a perpetual basis to customers who take possession of the software and install and maintain the software on their own hardware. Under the subscription delivery model, the Company provides access to its software on a hosted basis as a service and customers generally do not have the contractual right to take possession of the software. Non-Core Revenue The Company generates its non-core revenue by providing business process outsourcing (“BPO”), other IT services and internet services. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under Topic 606. The transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied by transferring the promised good or service to the customer. The Company identifies and tracks the performance obligations at contract inception so that the Company can monitor and account for the performance obligations over the life of the contract. The Company’s contracts which contain multiple performance obligations generally consist of the initial purchase of subscription or licenses and a professional services engagement. License purchases generally have multiple performance obligations as customers purchase post contract support and services in addition to the licenses. The Company’s single performance obligation arrangements are typically post contract support renewals, subscription renewals and services engagements. For contracts with multiple performance obligations where the contracted price differs from the standalone selling price (“SSP”) for any distinct good or service, the Company may be required to allocate the contract’s transaction price to each performance obligation using its best estimate for the SSP. Software Licenses Transfer of control for software is considered to have occurred upon delivery of the product to the customer. The Company’s typical payment terms tend to vary by region, but its standard payment terms are within 30 days of invoice. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) Subscription Subscription revenue is recognized ratably over the initial subscription period committed to by the customer commencing when the product is made available to the customer. The initial subscription period is typically 12 to 60 months. The Company generally invoices its customers in advance in quarterly or annual installments and typical payment terms provide that customers make payment within 30 days of invoice. Post Contract Support Revenue from support services and product updates, referred to as subscription and support revenue, is recognized ratably over the term of the maintenance period, which in most instances is one year. Software license updates provide customers with rights to unspecified software product updates and patches released during the term of the support period on a when-and-if available basis. The Company’s customers purchase both product support and license updates when they acquire new software licenses. In addition, a majority of customers renew their support services contracts annually and typical payment terms provide that customers make payment within 30 days of invoice. Professional Services Revenue from professional services is typically comprised of implementation, development, data migration, training or other consulting services. Consulting services are generally sold on a time-and-materials or fixed fee basis and can include services ranging from software installation to data conversion and building non-complex interfaces to allow the software to operate in integrated environments. The Company recognizes revenue for time-and-materials arrangements as the services are performed. In fixed fee arrangements, revenue is recognized as services are performed as measured by costs incurred to date, compared to total estimated costs to complete the services project. Management applies judgment when estimating project status and the costs necessary to complete the services projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. Services are generally invoiced upon milestones in the contract or upon consumption of the hourly resources and payments are typically due 30 days after invoice. BPO and Internet Services Revenue from BPO services is recognized based on the stage of completion which is measured by reference to labor hours incurred to date as a percentage of total estimated labor hours for each contract. Internet services are invoiced either monthly, quarterly or half yearly in advance to the customers and revenue is recognized ratably overtime on a monthly basis. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) Disaggregated Revenue The Company disaggregates revenue from contracts with customers by category — core and non-core, as it believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company’s disaggregated revenue by category is as follows: SCHEDULE OF DISAGGREGATED REVENUE BY CATEGORY 2023 2022 2023 2022 For the Three Months For the Nine Months Ended March 31, Ended March 31, 2023 2022 2023 2022 Core: License $ 1,982,985 $ 1,620,827 $ 2,248,829 $ 3,586,874 Subscription and support 6,656,082 6,554,540 19,175,585 22,159,798 Services 3,869,444 5,416,635 14,109,271 14,140,429 Total core revenue, net 12,508,511 13,592,002 35,533,685 39,887,101 Non-Core: Services 997,878 1,217,824 3,069,181 3,816,448 Total non-core revenue, net 997,878 1,217,824 3,069,181 3,816,448 Total net revenue $ 13,506,389 $ 14,809,826 $ 38,602,866 $ 43,703,549 Significant Judgments Due to the complexity of certain contracts, the actual revenue recognition treatment required under Topic 606 for the Company’s arrangements may be dependent on contract-specific terms and may vary in some instances. Judgment is required to determine the SSP for each distinct performance obligation. The Company rarely licenses or sells products on a stand-alone basis, so the Company is required to estimate the range of SSPs for each performance obligation. In instances where SSP is not directly observable because the Company does not sell the license, product or service separately, the Company determines the SSP using information that may include market conditions and other observable inputs. In making these judgments, the Company analyzes various factors, including its pricing methodology and consistency, size of the arrangement, length of term, customer demographics and overall market and economic conditions. Based on these results, the estimated SSP is set for each distinct product or service delivered to customers. The most significant inputs involved in the Company’s revenue recognition policies are: The (1) stand-alone selling prices of the Company’s software license, and the (2) the method of recognizing revenue for installation/customization, and other services. The stand-alone selling price of the licenses was measured primarily through an analysis of pricing that management evaluated when quoting prices to customers. Although the Company has no history of selling its software separately from post contract support and other services, the Company does have historical experience with amending contracts with customers to provide additional modules of its software or providing those modules at an optional price. This information guides the Company in assessing the stand-alone selling price of the Company’s software, since the Company can observe instances where a customer had a particular component of the Company’s software that was essentially priced separate from other goods and services that the Company delivered to that customer. The Company recognizes revenue from implementation and customization services using the percentage of estimated “man-days” that the work requires. The Company believes the level of effort to complete the services is best measured by the amount of time (measured as an employee working for one day on implementation/customization work) that is required to complete the implementation or customization work. The Company reviews its estimate of man-days required to complete implementation and customization services each reporting period. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) Revenue is recognized over time for the Company’s subscription, post contract support and fixed fee professional services that are separate performance obligations. For the Company’s professional services, revenue is recognized over time, generally using costs incurred or hours expended to measure progress. Judgment is required in estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization, specification variances and testing requirement changes. If a group of agreements are entered at or near the same time and so closely related that they are, in effect, part of a single arrangement, such agreements are deemed to be combined as one arrangement for revenue recognition purposes. The Company exercises significant judgment to evaluate the relevant facts and circumstances in determining whether agreements should be accounted for separately or as a single arrangement. The Company’s judgments about whether a group of contracts comprise a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved. If a contract includes variable consideration, the Company exercises judgment in estimating the amount of consideration to which the entity will be entitled in exchange for transferring the promised goods or services to a customer. When estimating variable consideration, the Company will consider all relevant facts and circumstances. Variable consideration will be estimated and included in the contract price only when it is probable that a significant reversal in the amount of revenue recognized will not occur. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in receivables, contract assets (revenues in excess of billings), or contract liabilities (unearned revenue) on the Company’s Consolidated Balance Sheets. The Company records revenues in excess of billings when the Company has transferred goods or services but does not yet have the right to consideration. The Company records unearned revenue when the Company has received or has the right to receive consideration but has not yet transferred goods or services to the customer. The revenues in excess of billings are transferred to receivables when the rights to consideration become unconditional, usually upon completion of a milestone. The Company’s revenues in excess of billings and unearned revenue are as follows: SCHEDULE OF REVENUES IN EXCESS OF BILLINGS AND DEFERRED REVENUE As of As of March 31, 2023 June 30, 2022 Revenues in excess of billings $ 13,741,884 $ 15,425,377 Unearned revenue $ 4,167,655 $ 4,901,562 During the three and nine months ended March 31, 2023, the Company recognized revenue of $ 484,239 3,268,811 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) Revenue allocated to 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 $ 33.6 15.2 Unearned Revenue The Company typically invoices its customers for subscription and support fees in advance on a quarterly or annual basis, with payment due at the start of the subscription or support term. Unpaid invoice amounts for non-cancelable license and services starting in future periods are included in accounts receivable and unearned revenue. Practical Expedients and Exemptions There are several practical expedients and exemptions allowed under Topic 606 that impact timing of revenue recognition and the Company’s disclosures. The Company has applied the following practical expedients: ● The Company does not evaluate a contract for a significant financing component if payment is expected within one year or less from the transfer of the promised items to the customer. ● The Company generally expenses sales commissions and sales agent fees when incurred when the amortization period would have been one year or less or the commissions are based on cashed received. These costs are recorded within sales and marketing expense in the Consolidated Statement of Operations. ● The Company does not disclose the value of unsatisfied performance obligations for contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed (applies to time-and-material engagements). Costs to Obtain a Contract The Company does not have a material amount of costs to obtain a contract capitalized at any balance sheet date. In general, the Company incurs few direct incremental costs of obtaining new customer contracts. The Company rarely incurs incremental costs to review or otherwise enter into contractual arrangements with customers. In addition, the Company’s sales personnel receive fees that are referred to as commissions, but that are based on more than simply signing up new customers. The Company’s sales personnel are required to perform additional duties beyond new customer contract inception dates, including fulfillment duties and collections efforts. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited)

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Mar. 31, 2023
Net income (loss) per share:
EARNINGS PER SHARE	NOTE 4 – EARNINGS PER SHARE Basic earnings per share are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. During the three and nine months ended March 31, 2023 and 2022, there were no

OTHER COMPREHENSIVE INCOME AND

OTHER COMPREHENSIVE INCOME AND FOREIGN CURRENCY	9 Months Ended
	Mar. 31, 2023
Other Comprehensive Income And Foreign Currency
OTHER COMPREHENSIVE INCOME AND FOREIGN CURRENCY	NOTE 5 – OTHER COMPREHENSIVE INCOME AND FOREIGN CURRENCY The accounts of NTE, AEL, VLSH and VLS use the British Pound; VLSIL uses the Euro; NetSol PK, Connect, and NetSol Innovation use the Pakistan Rupee; NTPK Thailand, NetSol Thai and Otoz Thai use the Thai Baht; Australia uses the Australian dollar; Namecet uses AED; and NetSol Beijing and Tianjin use the Chinese Yuan as the functional currencies. NetSol Technologies, Inc., and its subsidiaries, NTA and Otoz, use the U.S. dollar as the functional currency. Assets and liabilities are translated at the exchange rate on the balance sheet date, and operating results are translated at the average exchange rate throughout the period. Accumulated translation losses classified as an item of accumulated other comprehensive loss in the stockholders’ equity section of the consolidated balance sheet were $ 47,192,994 39,363,085 (5,181,654) (7,829,909) (1,804,777) (4,871,925)

MAJOR CUSTOMERS

MAJOR CUSTOMERS	9 Months Ended
	Mar. 31, 2023
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS	NOTE 6 – MAJOR CUSTOMERS During the nine months ended March 31, 2023, revenues from Daimler Financial Services (“DFS”) and BMW Financial (“BMW”) were $ 10,824,636 3,208,649 28.0 8.3 15,692,171 3,203,536 35.9 7.3 Accounts receivable from DFS and BMW at March 31, 2023, were $ 2,284,979 1,104,698 2,005,463 2,498,645 2,016,970 2,002,579 365,863 2,199,381

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	9 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER CURRENT ASSETS	NOTE 7 - OTHER CURRENT ASSETS Other current assets consisted of the following: SCHEDULE OF OTHER CURRENT ASSETS As of As of March 31, 2023 June 30, 2022 Prepaid Expenses $ 1,438,244 $ 1,389,370 Advance Income Tax 218,352 202,783 Employee Advances 64,454 87,627 Security Deposits 241,160 236,909 Other Receivables 188,157 21,581 Other Assets 449,165 285,091 Net Balance $ 2,599,532 $ 2,223,361 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited)

REVENUES IN EXCESS OF BILLINGS

REVENUES IN EXCESS OF BILLINGS – LONG TERM	9 Months Ended
	Mar. 31, 2023
Contractors [Abstract]
REVENUES IN EXCESS OF BILLINGS – LONG TERM	NOTE 8 – REVENUES IN EXCESS OF BILLINGS – LONG TERM Revenues in excess of billings, net consisted of the following: SCHEDULE OF REVENUE IN EXCESS OF BILLING As of As of March 31, 2023 June 30, 2022 Revenues in excess of billings - long term $ - $ 881,940 Present value discount - (28,339 ) Net Balance $ - $ 853,601 Pursuant to revenue recognition for contract accounting, the Company had recorded revenues in excess of billings long-term for amounts billable after one year. During the three and nine months ended March 31, 2023, the Company accreted $ 9,372 28,029 9,546 28,587 4.65 6.25

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 9 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT As of As of March 31, 2023 June 30, 2022 Office Furniture and Equipment $ 2,671,137 $ 3,021,586 Computer Equipment 9,023,276 11,388,856 Assets Under Capital Leases 47,112 305,081 Building 3,537,674 4,818,650 Land 896,086 1,237,965 Autos 1,920,072 2,503,990 Improvements 212,431 175,560 Subtotal 18,307,788 23,451,688 Accumulated Depreciation (11,436,752 ) (14,069,064 ) Property and Equipment, Net $ 6,871,036 $ 9,382,624 For the three and nine months ended March 31, 2023, depreciation expense totaled $ 507,314 1,598,325 327,177 1,029,012 540,822 1,608,007 334,476 974,526 Following is a summary of fixed assets held under finance leases as of March 31, 2023 and June 30, 2022: SUMMARY OF FIXED ASSETS HELD UNDER CAPITAL LEASES As of As of March 31, 2023 June 30, 2022 Vehicles $ 47,112 $ 305,081 Total 47,112 305,081 Less: Accumulated Depreciation - Net (15,218 ) (145,658 ) Fixed assets held under finance leases, Total $ 31,894 $ 159,423 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) Finance lease term and discount rate were as follows: SCHEDULE OF FINANCE LEASE TERM As of As of March 31, 2023 June 30, 2022 Weighted average remaining lease term - Finance leases 1.42 2.39 Weighted average discount rate - Finance leases 16.4 % 12.5 %

LEASES

LEASES	9 Months Ended
	Mar. 31, 2023
Leases
LEASES	NOTE 10 - LEASES The Company leases certain office space, office equipment and autos with remaining lease terms of one year 10 one year 10 The Company treats a contract as a lease when the contract conveys the right to use a physically distinct asset for a period of time in exchange for consideration, or the Company directs the use of the asset and obtains substantially all the economic benefits of the asset. These leases are recorded as right-of-use (“ROU”) assets and lease obligation liabilities for leases with terms greater than 12 months. ROU assets represent the Company’s right to use an underlying asset for the entirety of the lease term. Lease liabilities represent the Company’s obligation to make payments over the life of the lease. A ROU asset and a lease liability are recognized at commencement of the lease based on the present value of the lease payments over the life of the lease. Initial direct costs are included as part of the ROU asset upon commencement of the lease. Since the interest rate implicit in a lease is generally not readily determinable for the operating leases, the Company uses an incremental borrowing rate to determine the present value of the lease payments. The incremental borrowing rate represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar lease term to obtain an asset of similar value. The Company reviews the impairment of ROU assets consistent with the approach applied for the Company’s other long-lived assets. The Company reviews the recoverability of long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company elected the practical expedient to exclude short-term leases (leases with original terms of 12 months or less) from ROU asset and lease liability accounts. Lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. Variable payments change due to facts or circumstances occurring after the commencement date, other than the passage of time, and do not result in a re-measurement of lease liabilities. The Company’s variable lease payments include payments for finance leases that are adjusted based on a change in the Karachi Inter Bank Offer Rate. The Company’s lease agreements do not contain any significant residual value guarantees or restrictive covenants. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) Supplemental balance sheet information related to leases was as follows: SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASE As of As of March 31, 2023 June 30, 2022 Assets Operating lease assets, net $ 1,102,729 $ 969,163 Liabilities Current Operating $ 421,223 $ 548,678 Operating, Current $ 421,223 $ 548,678 Non-current Operating 651,443 447,260 Operating, Non-current 651,443 447,260 Total Lease Liabilities $ 1,072,666 $ 995,938 The components of lease cost were as follows: SCHEDULE OF COMPONENTS OF LEASE COST 2023 2022 2023 2022 For the Three Months For the Nine Months Ended March 31, Ended March 31, 2023 2022 2023 2022 Amortization of finance lease assets $ 7,706 $ 16,273 $ 13,701 $ 59,201 Interest on finance lease obligation 1,043 5,632 4,402 13,780 Operating lease cost 115,392 137,270 346,993 518,048 Short term lease cost 39,356 128,008 143,978 166,789 Sub lease income (8,099 ) (8,907 ) (23,697 ) (27,012 ) Total lease cost $ 155,398 $ 278,276 $ 485,377 $ 730,806 Lease term and discount rate were as follows: SCHEDULE OF LEASE TERM AND DISCOUNT RATE As of As of March 31, 2023 June 30, 2022 Weighted average remaining lease term - Operating leases 3.39 3.34 Weighted average discount rate - Operating leases 3.3 % 4.2 % NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) Supplemental disclosures of cash flow information related to leases were as follows: SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION RELATED TO LEASES 2023 2022 For the Nine Months Ended March 31 2023 2022 Operating cash flows related to operating leases $ 358,778 $ 504,447 Operating cash flows related to finance leases $ 4,472 $ 3,553 Financing cash flows related finance leases $ 24,362 $ 55,399 Maturities of operating lease liabilities were as follows as of March 31, 2023: SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES Amount Within year 1 $ 450,939 Within year 2 367,359 Within year 3 213,770 Within year 4 92,657 Within year 5 465 Thereafter 582 Total Lease Payments 1,125,772 Less: Imputed interest (53,106 ) Present Value of lease liabilities 1,072,666 Less: Current portion (421,223 ) Non-Current portion $ 651,443 The Company is a lessor for certain office space leased by the Company and sub-leased to others under non-cancelable leases. These lease agreements provide for a fixed base rent and are currently on a month-by-month basis. All leases are considered operating leases. There are no rights to purchase the premises and no residual value guarantees. For the three and nine months ended March 31, 2023, the Company received lease income of $ 8,099 23,697 8,907 27,012 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited)

LONG TERM INVESTMENT

LONG TERM INVESTMENT	9 Months Ended
	Mar. 31, 2023
Investments, All Other Investments [Abstract]
LONG TERM INVESTMENT	NOTE 11 – LONG TERM INVESTMENT Drivemate – Related Party The Company and Drivemate Co., Ltd. (“Drivemate”) entered into a subscription agreement on April 25, 2019, (“Drivemate Agreement”) whereby the Company purchased an equity interest of 30 5,469 1,800,000 500,000 1,300,000 500,000 1,300,000 Pursuant to the agreement, the number of shares to be issued is adjusted as necessary to result in an equity ownership equal to 30% of the issued and outstanding shares at the final payment date. As of March 31, 2023, the Company has been issued 8,178 shares equal to 30% of Drivemate. Per the Drivemate Agreement, the Company appointed two directors to the Drivemate board. The Company determined that it met the significant influence criteria since two of the four directors are appointed by the Company and the Company owns 30% of Drivemate; therefore, the Company accounts for the investment using the equity method of accounting Under the equity method of accounting, the Company recorded its share of net income of $ 2,377 7,510 4,712 54,193 The following table reflects the above investments at March 31, 2023 and June 30, 2022. SCHEDULE OF LONG TERM INVESTMENT As of As of March 31, 2023 June 30, 2022 Gross investment $ 1,800,000 $ 1,800,000 Cumulative net loss on investment (733,122 ) (740,632 ) Net investment $ 1,066,878 $ 1,059,368

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 12 - INTANGIBLE ASSETS Intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS As of As of March 31, 2023 June 30, 2022 Product Licenses - Cost $ 47,244,997 $ 47,244,997 Effect of Translation Adjustment (24,664,606 ) (19,914,206 ) Accumulated Amortization (22,198,513 ) (25,743,121 ) Net Balance $ 381,878 $ 1,587,670 Product Licenses Product licenses include internally developed original license issues, renewals, enhancements, copyrights, trademarks, and trade names. Product licenses are amortized on a straight-line basis over their respective lives, and the unamortized amount of $ 381,878 275,652 921,144 407,111 1,261,664 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited)

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	9 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 13 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES As of As of March 31, 2023 June 30, 2022 Accounts Payable $ 987,963 $ 1,175,527 Accrued Liabilities 4,102,715 3,507,415 Accrued Payroll 1,182,049 1,397,605 Accrued Payroll Taxes 150,020 153,416 Taxes Payable 325,586 328,755 Other Payable 349,873 250,823 Total $ 7,098,206 $ 6,813,541

DEBTS

DEBTS	9 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
DEBTS	NOTE 14 – DEBTS Notes payable and finance leases consisted of the following: SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES As of March 31, 2023 Current Long-Term Name Total Maturities Maturities D&O Insurance (1 ) $ 179,887 $ 179,887 $ - Bank Overdraft Facility (2 ) - - - Term Finance Facility (3 ) - - - Loan Payable Bank - Export Refinance (4 ) 1,762,363 1,762,363 - Loan Payable Bank - Running Finance (5 ) - - - Loan Payable Bank - Export Refinance II (6 ) 1,339,396 1,339,396 - Loan Payable Bank - Export Refinance III (7 ) 2,467,308 2,467,308 - Sale and Leaseback Financing (8 ) 358,939 149,396 209,543 Term Finance Facility (9 ) 17,773 17,773 - Insurance Financing (10 ) 22,594 22,594 - 6,148,260 5,938,717 209,543 Subsidiary Finance Leases (11 ) 36,027 30,327 5,700 $ 6,184,287 $ 5,969,044 $ 215,243 As of June 30, 2022 Current Long-Term Name Total Maturities Maturities D&O Insurance (1 ) $ 89,552 $ 89,552 $ - Bank Overdraft Facility (2 ) - - - Term Finance Facility (3 ) 423,101 423,101 - Loan Payable Bank - Export Refinance (4 ) 2,434,749 2,434,749 - Loan Payable Bank - Running Finance (5 ) - - - Loan Payable Bank - Export Refinance II (6 ) 1,850,409 1,850,409 - Loan Payable Bank - Export Refinance III (7 ) 3,408,648 3,408,648 - Sale and Leaseback Financing (8 ) 619,108 189,226 429,882 Term Finance Facility (9 ) 31,204 18,339 12,865 Insurance Financing (10 ) 118,026 118,026 - 8,974,797 8,532,050 442,747 Subsidiary Finance Leases (11 ) 68,571 35,095 33,476 $ 9,043,368 $ 8,567,145 $ 476,223 (1) The Company finances Directors’ and Officers’ (“D&O”) liability insurance and Errors and Omissions (“E&O”) liability insurance, for which the D&O and E&O balances are renewed on an annual basis and, as such, are recorded in current maturities. The interest rate on these financings were ranging from 5.0 7.9 5.0 7.0 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) (2) The Company’s subsidiary, NTE, has an overdraft facility with HSBC Bank plc whereby the bank would cover any overdrafts up to £ 300,000 370,370 5.5 Nil This overdraft facility requires that the aggregate amount of invoiced trade debtors (net of provisions for bad and doubtful debts and excluding intra-group debtors) of NTE, not exceeding 90 days old, will not be less than an amount equal to 200 % of the facility. As of March 31, 2023, NTE was in compliance with this covenant. (3) The Company’s subsidiary, NetSol PK, has a term finance facility from Askari Bank Limited, approved by the Government of Pakistan to protect the employment situation during the COVID-19 pandemic. This is a term loan payable in three years. The availed facility amount was Rs. nil nil 86,887,974 423,101 3.0 (4) The Company’s subsidiary, NetSol PK, has an export refinance facility with Askari Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every nine months. The total facility amount is Rs. 500,000,000 1,762,363 500,000,000 2,434,749 17.0 3.0 (5) The Company’s subsidiary, NetSol PK, has a running finance facility with Askari Bank Limited, secured by NetSol PK’s assets. The total facility amount is Rs. 53,000,000 188,925 Nil 24.0 14.0 This facility requires NetSol PK to maintain a long-term debt equity ratio of 60:40 and a current ratio of 1:1. As of March 31, 2023, NetSol PK was in compliance with this covenant (6) The Company’s subsidiary, NetSol PK, has an export refinance facility with Samba Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every nine months. The total facility amount is Rs. 380,000,000 1,339,936 380,000,000 1,850,409 10.0 3.0 During the tenure of the loan, the facilities from Samba Bank Limited require NetSol PK to maintain at a minimum a current ratio of 1:1, an interest coverage ratio of 4 times, a leverage ratio of 2 times, and a debt service coverage ratio of 4 times. As of March 31, 2023, NetSol PK was in compliance with these covenants (7) The Company’s subsidiary, NetSol PK, has an export refinance facility with Habib Metro Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every nine months. The total facility amount is Rs. 900,000,000 3,172,253 900,000,000 4,382,548 700,000,000 2,467,308 700,000,000 3,408,648 10.0 3.0 (8) The Company’s subsidiary, NetSol PK, availed sale and leaseback financing from First Habib Modaraba secured by the transfer of the vehicles’ title. As of March 31, 2023, NetSol PK used Rs. 101,834,660 358,939 209,543 149,396 127,140,038 619,108 429,882 189,226 9.0 16.0 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) (9) In March 2019, the Company’s subsidiary, VLS, entered into a loan agreement. The loan amount was £ 69,549 85,863 1,349 1,665 17,773 31,204 12,865 18,339 6.14 (10) The Company’s subsidiary, VLS, finances Directors’ and Officers’ (“D&O”) liability insurance, and the $ 22,594 118,026 9.7 12.7 (11) The Company leases various fixed assets under finance lease arrangements expiring in various years through 2025. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are secured by the assets themselves. Depreciation of assets under finance leases is included in depreciation expense for the three and nine months ended March 31, 2023 and 2022. Following are the aggregate minimum future lease payments under finance leases as of March 31, 2023: SCHEDULE OF AGGREGATE MINIMUM FUTURE LEASE PAYMENTS UNDER CAPITAL LEASES Amount Minimum Lease Payments Within year 1 $ 33,135 Within year 2 6,052 Total Minimum Lease Payments 39,187 Interest Expense relating to future periods (3,160 ) Present Value of minimum lease payments 36,027 Less: Current portion (30,327 ) Current portion of loans and obligations under finance leases Non-Current portion $ 5,700 Loans and obligations under finance leases; less current maturities Following are the aggregate future long term debt payments as of March 31, 2023 SCHEDULE OF AGGREGATE FUTURE LONG TERM DEBT PAYMENTS Amount Loan Payments Within year 1 $ 167,169 Within year 2 156,040 Within year 3 53,503 Total Loan Payments 376,712 Less: Current portion (167,169 ) Non-Current portion $ 209,543 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited)

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	9 Months Ended
	Mar. 31, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 15 - STOCKHOLDERS’ EQUITY During the three and nine months ended March 31, 2023, the Company issued 15,057 41,472 39,750 119,250

CONTINGENCIES

CONTINGENCIES	9 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	NOTE 16 – CONTINGENCIES From time to time, the Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business including tax assessments. The Company defends itself vigorously against any such claims. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, the Company records the estimated loss. The Company provides disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. The Company bases accruals on the best information available at the time, which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements.

OPERATING SEGMENTS

OPERATING SEGMENTS	9 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 17 – OPERATING SEGMENTS The Company has identified three The following table presents a summary of identifiable assets as of March 31, 2023 and June 30, 2022: SUMMARY OF IDENTIFIABLE ASSETS As of As of March 31, 2023 June 30, 2022 Identifiable assets: Corporate headquarters $ 1,633,771 $ 844,178 North America 6,332,955 6,442,219 Europe 8,351,282 8,727,530 Asia - Pacific 43,231,859 56,594,705 Consolidated $ 59,549,867 $ 72,608,632 The following table presents a summary of investment under equity method as of March 31, 2023 and June 30, 2022: SUMMARY OF INVESTMENT UNDER EQUITY METHOD As of As of March 31, 2023 June 30, 2022 Investment in associates under equity method: Asia - Pacific $ 1,066,878 $ 1,059,368 Consolidated $ 1,066,878 $ 1,059,368 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) The following table presents a summary of operating information for the three and nine months ended March 31: SUMMARY OF OPERATING INFORMATION For the Three Months For the Nine Months Ended March 31, Ended March 31, 2023 2022 2023 2022 Revenues from unaffiliated customers: North America $ 1,365,556 $ 1,113,820 $ 4,088,696 $ 3,104,433 Europe 2,550,372 2,088,918 7,643,408 7,483,911 Asia - Pacific 9,590,461 11,607,088 26,870,762 33,115,205 13,506,389 14,809,826 38,602,866 43,703,549 Revenue from affiliated customers Asia - Pacific - - - - - - - - Consolidated $ 13,506,389 $ 14,809,826 $ 38,602,866 $ 43,703,549 Intercompany revenue Europe $ 103,249 $ 105,668 $ 292,210 $ 349,345 Asia - Pacific 2,985,506 3,104,913 7,260,557 6,439,377 Eliminated $ 3,088,755 $ 3,210,581 $ 7,552,767 $ 6,788,722 Net income (loss) after taxes and before non-controlling interest: Corporate headquarters $ 289,652 $ (394,375 ) $ 919,914 $ (127,742 ) North America (3,702 ) (86,722 ) 82,677 (213,730 ) Europe (103,219 ) (575,533 ) (586,607 ) (973,972 ) Asia - Pacific 4,059,800 1,039,158 986,613 4,287,015 Consolidated $ 4,242,531 $ (17,472 ) $ 1,402,597 $ 2,971,571 Depreciation and amortization: North America $ 657 $ 451 $ 1,866 $ 1,544 Europe 65,584 88,987 207,186 288,481 Asia - Pacific 716,725 858,495 2,310,417 2,579,646 Consolidated $ 782,966 $ 947,933 $ 2,519,469 $ 2,869,671 Interest expense: Corporate headquarters $ 7,834 $ 8,105 $ 16,226 $ 28,111 North America - - - - Europe 1,806 1,766 8,146 8,050 Asia - Pacific 178,497 76,045 487,738 241,576 Consolidated $ 188,137 $ 85,916 $ 512,110 $ 277,737 Income tax expense: Corporate headquarters $ - $ - $ - $ (43,354 ) North America 1,600 400 1,600 46,154 Europe 2,822 - 2,822 9,524 Asia - Pacific 223,296 157,204 636,700 514,413 Consolidated $ 227,718 $ 157,604 $ 641,122 $ 526,737 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) The following table presents a summary of capital expenditures for the nine months ended March 31: SUMMARY OF CAPITAL EXPENDITURES For the Nine Months Ended March 31, 2023 2022 Capital expenditures: North America $ 4,880 $ - Europe 31,519 134,450 Asia - Pacific 1,538,660 1,546,406 Consolidated $ 1,575,059 $ 1,680,856

NON-CONTROLLING INTEREST IN SUB

NON-CONTROLLING INTEREST IN SUBSIDIARY	9 Months Ended
	Mar. 31, 2023
Noncontrolling Interest [Abstract]
NON-CONTROLLING INTEREST IN SUBSIDIARY	NOTE 18 – NON-CONTROLLING INTEREST IN SUBSIDIARY The Company had non-controlling interests in several of its subsidiaries. The balance of non-controlling interest was as follows: SCHEDULE OF BALANCE OF NON-CONTROLLING INTEREST SUBSIDIARY Non-Controlling Interest % Non-Controlling Interest at March 31, NetSol PK 32.38 % $ 3,630,559 NetSol-Innovation 32.38 % (123,724 ) NAMECET 32.38 % (3,608 ) NetSol Thai 0.006 % (197 ) OTOZ Thai 10.95 % (43,064 ) OTOZ 10.94 % (156,930 ) Total $ 3,303,036 SUBSIDIARY Non-Controlling Interest % Non-Controlling Interest at NetSol PK 32.38 % $ 5,479,905 NetSol-Innovation 32.38 % 49,146 NetSol Thai 0.006 % (196 ) OTOZ Thai 5.60 % (30,768 ) OTOZ 5.59 % (47,698 ) Total $ 5,450,389 The Company’s subsidiary, Otoz, issued 191,011 5.59 10.94 10.95 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) The following schedule discloses the effect to the Company’s equity due to the changes in the Company’s ownership interest in Otoz and Otoz Thai. SCHEDULE OF CHANGE IN OWNERSHIP INTEREST 2023 2022 2023 2022 For the Three Months For the Nine Months Ended March 31, Ended March 31, 2023 2022 2023 2022 Net income (loss) attributable to NetSol $ 2,544,623 $ (278,470 ) $ (169,032 ) $ 1,316,284 Transfer (to) from non-controlling interest Increase in paid-in capital for issuance of 191,011 - - 120,565 - Net transfer (to) from non-controlling interest - - 120,565 - Change from net income (loss) attributable to NetSol and transfer (to) from non-controlling interest $ 2,544,623 $ (278,470 ) $ (48,467 ) $ 1,316,284

INCOME TAXES

INCOME TAXES	9 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 19– INCOME TAXES The current tax provision is based on taxable income for the year determined in accordance with the prevailing law for taxation of income. The charge for tax on income is calculated at the current rates of taxation as applicable after considering tax credit and tax rebates available, if any. We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Our effective tax rate is lower than the U.S. statutory rate primarily because of more earnings realized in countries that have lower statutory tax rates. Our effective tax rate in the future will depend on the portion of our profits earned within and outside the United States. Income from the export of computer software and its related services developed in Pakistan is exempt from tax through June 30, 2025; however, tax at the applicable rates is charged to the income from revenue generated from other than core business activities. During the three and nine months ended March 31, 2023, the Company recorded an income tax provision of $ 227,718 641,122 157,604 526,737

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	9 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The areas requiring significant estimates are provision for doubtful accounts, provision for taxation, useful life of depreciable assets, useful life of intangible assets, contingencies, assumptions used to determine the net present value of operating lease liabilities, and estimated contract costs. The estimates and underlying assumptions are reviewed on an ongoing basis. Actual results could differ from those estimates.
Concentration of Credit Risk	Concentration of Credit Risk Cash includes cash on hand and demand deposits in accounts maintained within the United States as well as in foreign countries. Certain financial instruments, which subject the Company to concentration of credit risk, consist of cash and restricted cash. The Company maintains balances at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation insured limits for the banks located in the United States. Balances at financial institutions within certain foreign countries are not covered by insurance except balances maintained in China are insured for RMB 500,000 72,780 85,000 104,938 13,089,660 22,758,963 The Company’s operations are carried out globally. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments of each country and by the general state of the country’s economy. The Company’s operations in each foreign country are subject to specific considerations and significant risks not typically associated with companies in economically developed nations. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company applies the provisions of Accounting Standards Codification (“ASC”) 820-10, “Fair Value Measurements and Disclosures.” The three levels of valuation hierarchy are defined as follows: Level 1: Valuations consist of unadjusted quoted prices in active markets for identical assets and liabilities and has the highest priority. Level 2: Valuations rely on quoted prices in markets that are not active or observable inputs over the full term of the asset or liability. Level 3: Valuations are based on prices or third party or internal valuation models that require inputs that are significant to the fair value measurement and are less observable and thus have the lowest priority. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) The Company did not have any financial assets that were measured at fair value on a recurring basis at March 31, 2023. The Company’s financial assets that were measured at fair value on a recurring basis as of June 30, 2022, were as follows: SCHEDULE OF FAIR VALUE OF FINANCIAL ASSETS MEASURED ON RECURRING BASIS Level 1 Level 2 Level 3 Total Assets Revenues in excess of billings - long term $ - $ - $ 853,601 $ 853,601 Total $ - $ - $ 853,601 $ 853,601 The reconciliation from June 30, 2022 to March 31, 2023 is as follows: SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS RECONCILIATION Revenues in excess of billings - long term Fair value discount Total Balance at June 30, 2022 $ 881,940 $ (28,339 ) $ 853,601 Amortization during the period - 28,029 28,029 Transfers to short term (890,794 ) - (890,794 ) Effect of Translation Adjustment 8,854 310 9,164 Balance at March 31, 2023 $ - $ - $ - Management analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity” “Derivatives and Hedging.”
Recent Accounting Standards	Recent Accounting Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. ASU 2021-08 is effective for annual periods beginning after December 15, 2022, and interim periods within those years, with early adoption permitted. The Company does not expect the standard to have a material effect on its consolidated financial statements. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable.

ACCOUNTING POLICIES (Tables)

ACCOUNTING POLICIES (Tables)	9 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
SCHEDULE OF FAIR VALUE OF FINANCIAL ASSETS MEASURED ON RECURRING BASIS	The Company’s financial assets that were measured at fair value on a recurring basis as of June 30, 2022, were as follows: SCHEDULE OF FAIR VALUE OF FINANCIAL ASSETS MEASURED ON RECURRING BASIS Level 1 Level 2 Level 3 Total Assets Revenues in excess of billings - long term $ - $ - $ 853,601 $ 853,601 Total $ - $ - $ 853,601 $ 853,601
SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS RECONCILIATION	The reconciliation from June 30, 2022 to March 31, 2023 is as follows: SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS RECONCILIATION Revenues in excess of billings - long term Fair value discount Total Balance at June 30, 2022 $ 881,940 $ (28,339 ) $ 853,601 Amortization during the period - 28,029 28,029 Transfers to short term (890,794 ) - (890,794 ) Effect of Translation Adjustment 8,854 310 9,164 Balance at March 31, 2023 $ - $ - $ -

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
SCHEDULE OF DISAGGREGATED REVENUE BY CATEGORY	The Company’s disaggregated revenue by category is as follows: SCHEDULE OF DISAGGREGATED REVENUE BY CATEGORY 2023 2022 2023 2022 For the Three Months For the Nine Months Ended March 31, Ended March 31, 2023 2022 2023 2022 Core: License $ 1,982,985 $ 1,620,827 $ 2,248,829 $ 3,586,874 Subscription and support 6,656,082 6,554,540 19,175,585 22,159,798 Services 3,869,444 5,416,635 14,109,271 14,140,429 Total core revenue, net 12,508,511 13,592,002 35,533,685 39,887,101 Non-Core: Services 997,878 1,217,824 3,069,181 3,816,448 Total non-core revenue, net 997,878 1,217,824 3,069,181 3,816,448 Total net revenue $ 13,506,389 $ 14,809,826 $ 38,602,866 $ 43,703,549
SCHEDULE OF REVENUES IN EXCESS OF BILLINGS AND DEFERRED REVENUE	The Company’s revenues in excess of billings and unearned revenue are as follows: SCHEDULE OF REVENUES IN EXCESS OF BILLINGS AND DEFERRED REVENUE As of As of March 31, 2023 June 30, 2022 Revenues in excess of billings $ 13,741,884 $ 15,425,377 Unearned revenue $ 4,167,655 $ 4,901,562

OTHER CURRENT ASSETS (Tables)

OTHER CURRENT ASSETS (Tables)	9 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
SCHEDULE OF OTHER CURRENT ASSETS	Other current assets consisted of the following: SCHEDULE OF OTHER CURRENT ASSETS As of As of March 31, 2023 June 30, 2022 Prepaid Expenses $ 1,438,244 $ 1,389,370 Advance Income Tax 218,352 202,783 Employee Advances 64,454 87,627 Security Deposits 241,160 236,909 Other Receivables 188,157 21,581 Other Assets 449,165 285,091 Net Balance $ 2,599,532 $ 2,223,361

REVENUES IN EXCESS OF BILLING_2

REVENUES IN EXCESS OF BILLINGS – LONG TERM (Tables)	9 Months Ended
	Mar. 31, 2023
Contractors [Abstract]
SCHEDULE OF REVENUE IN EXCESS OF BILLING	Revenues in excess of billings, net consisted of the following: SCHEDULE OF REVENUE IN EXCESS OF BILLING As of As of March 31, 2023 June 30, 2022 Revenues in excess of billings - long term $ - $ 881,940 Present value discount - (28,339 ) Net Balance $ - $ 853,601

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
SCHEDULE OF PROPERTY AND EQUIPMENT	Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT As of As of March 31, 2023 June 30, 2022 Office Furniture and Equipment $ 2,671,137 $ 3,021,586 Computer Equipment 9,023,276 11,388,856 Assets Under Capital Leases 47,112 305,081 Building 3,537,674 4,818,650 Land 896,086 1,237,965 Autos 1,920,072 2,503,990 Improvements 212,431 175,560 Subtotal 18,307,788 23,451,688 Accumulated Depreciation (11,436,752 ) (14,069,064 ) Property and Equipment, Net $ 6,871,036 $ 9,382,624
SUMMARY OF FIXED ASSETS HELD UNDER CAPITAL LEASES	Following is a summary of fixed assets held under finance leases as of March 31, 2023 and June 30, 2022: SUMMARY OF FIXED ASSETS HELD UNDER CAPITAL LEASES As of As of March 31, 2023 June 30, 2022 Vehicles $ 47,112 $ 305,081 Total 47,112 305,081 Less: Accumulated Depreciation - Net (15,218 ) (145,658 ) Fixed assets held under finance leases, Total $ 31,894 $ 159,423
SCHEDULE OF FINANCE LEASE TERM	Finance lease term and discount rate were as follows: SCHEDULE OF FINANCE LEASE TERM As of As of March 31, 2023 June 30, 2022 Weighted average remaining lease term - Finance leases 1.42 2.39 Weighted average discount rate - Finance leases 16.4 % 12.5 %

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Mar. 31, 2023
Leases
SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASE	Supplemental balance sheet information related to leases was as follows: SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASE As of As of March 31, 2023 June 30, 2022 Assets Operating lease assets, net $ 1,102,729 $ 969,163 Liabilities Current Operating $ 421,223 $ 548,678 Operating, Current $ 421,223 $ 548,678 Non-current Operating 651,443 447,260 Operating, Non-current 651,443 447,260 Total Lease Liabilities $ 1,072,666 $ 995,938
SCHEDULE OF COMPONENTS OF LEASE COST	The components of lease cost were as follows: SCHEDULE OF COMPONENTS OF LEASE COST 2023 2022 2023 2022 For the Three Months For the Nine Months Ended March 31, Ended March 31, 2023 2022 2023 2022 Amortization of finance lease assets $ 7,706 $ 16,273 $ 13,701 $ 59,201 Interest on finance lease obligation 1,043 5,632 4,402 13,780 Operating lease cost 115,392 137,270 346,993 518,048 Short term lease cost 39,356 128,008 143,978 166,789 Sub lease income (8,099 ) (8,907 ) (23,697 ) (27,012 ) Total lease cost $ 155,398 $ 278,276 $ 485,377 $ 730,806
SCHEDULE OF LEASE TERM AND DISCOUNT RATE	Lease term and discount rate were as follows: SCHEDULE OF LEASE TERM AND DISCOUNT RATE As of As of March 31, 2023 June 30, 2022 Weighted average remaining lease term - Operating leases 3.39 3.34 Weighted average discount rate - Operating leases 3.3 % 4.2 %
SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION RELATED TO LEASES	Supplemental disclosures of cash flow information related to leases were as follows: SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION RELATED TO LEASES 2023 2022 For the Nine Months Ended March 31 2023 2022 Operating cash flows related to operating leases $ 358,778 $ 504,447 Operating cash flows related to finance leases $ 4,472 $ 3,553 Financing cash flows related finance leases $ 24,362 $ 55,399
SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES	Maturities of operating lease liabilities were as follows as of March 31, 2023: SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES Amount Within year 1 $ 450,939 Within year 2 367,359 Within year 3 213,770 Within year 4 92,657 Within year 5 465 Thereafter 582 Total Lease Payments 1,125,772 Less: Imputed interest (53,106 ) Present Value of lease liabilities 1,072,666 Less: Current portion (421,223 ) Non-Current portion $ 651,443

LONG TERM INVESTMENT (Tables)

LONG TERM INVESTMENT (Tables)	9 Months Ended
	Mar. 31, 2023
Investments, All Other Investments [Abstract]
SCHEDULE OF LONG TERM INVESTMENT	The following table reflects the above investments at March 31, 2023 and June 30, 2022. SCHEDULE OF LONG TERM INVESTMENT As of As of March 31, 2023 June 30, 2022 Gross investment $ 1,800,000 $ 1,800,000 Cumulative net loss on investment (733,122 ) (740,632 ) Net investment $ 1,066,878 $ 1,059,368

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS	Intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS As of As of March 31, 2023 June 30, 2022 Product Licenses - Cost $ 47,244,997 $ 47,244,997 Effect of Translation Adjustment (24,664,606 ) (19,914,206 ) Accumulated Amortization (22,198,513 ) (25,743,121 ) Net Balance $ 381,878 $ 1,587,670

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	9 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES	Accounts payable and accrued expenses consisted of the following: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES As of As of March 31, 2023 June 30, 2022 Accounts Payable $ 987,963 $ 1,175,527 Accrued Liabilities 4,102,715 3,507,415 Accrued Payroll 1,182,049 1,397,605 Accrued Payroll Taxes 150,020 153,416 Taxes Payable 325,586 328,755 Other Payable 349,873 250,823 Total $ 7,098,206 $ 6,813,541

DEBTS (Tables)

DEBTS (Tables)	9 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES	Notes payable and finance leases consisted of the following: SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES As of March 31, 2023 Current Long-Term Name Total Maturities Maturities D&O Insurance (1 ) $ 179,887 $ 179,887 $ - Bank Overdraft Facility (2 ) - - - Term Finance Facility (3 ) - - - Loan Payable Bank - Export Refinance (4 ) 1,762,363 1,762,363 - Loan Payable Bank - Running Finance (5 ) - - - Loan Payable Bank - Export Refinance II (6 ) 1,339,396 1,339,396 - Loan Payable Bank - Export Refinance III (7 ) 2,467,308 2,467,308 - Sale and Leaseback Financing (8 ) 358,939 149,396 209,543 Term Finance Facility (9 ) 17,773 17,773 - Insurance Financing (10 ) 22,594 22,594 - 6,148,260 5,938,717 209,543 Subsidiary Finance Leases (11 ) 36,027 30,327 5,700 $ 6,184,287 $ 5,969,044 $ 215,243 As of June 30, 2022 Current Long-Term Name Total Maturities Maturities D&O Insurance (1 ) $ 89,552 $ 89,552 $ - Bank Overdraft Facility (2 ) - - - Term Finance Facility (3 ) 423,101 423,101 - Loan Payable Bank - Export Refinance (4 ) 2,434,749 2,434,749 - Loan Payable Bank - Running Finance (5 ) - - - Loan Payable Bank - Export Refinance II (6 ) 1,850,409 1,850,409 - Loan Payable Bank - Export Refinance III (7 ) 3,408,648 3,408,648 - Sale and Leaseback Financing (8 ) 619,108 189,226 429,882 Term Finance Facility (9 ) 31,204 18,339 12,865 Insurance Financing (10 ) 118,026 118,026 - 8,974,797 8,532,050 442,747 Subsidiary Finance Leases (11 ) 68,571 35,095 33,476 $ 9,043,368 $ 8,567,145 $ 476,223 (1) The Company finances Directors’ and Officers’ (“D&O”) liability insurance and Errors and Omissions (“E&O”) liability insurance, for which the D&O and E&O balances are renewed on an annual basis and, as such, are recorded in current maturities. The interest rate on these financings were ranging from 5.0 7.9 5.0 7.0 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) (2) The Company’s subsidiary, NTE, has an overdraft facility with HSBC Bank plc whereby the bank would cover any overdrafts up to £ 300,000 370,370 5.5 Nil This overdraft facility requires that the aggregate amount of invoiced trade debtors (net of provisions for bad and doubtful debts and excluding intra-group debtors) of NTE, not exceeding 90 days old, will not be less than an amount equal to 200 % of the facility. As of March 31, 2023, NTE was in compliance with this covenant. (3) The Company’s subsidiary, NetSol PK, has a term finance facility from Askari Bank Limited, approved by the Government of Pakistan to protect the employment situation during the COVID-19 pandemic. This is a term loan payable in three years. The availed facility amount was Rs. nil nil 86,887,974 423,101 3.0 (4) The Company’s subsidiary, NetSol PK, has an export refinance facility with Askari Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every nine months. The total facility amount is Rs. 500,000,000 1,762,363 500,000,000 2,434,749 17.0 3.0 (5) The Company’s subsidiary, NetSol PK, has a running finance facility with Askari Bank Limited, secured by NetSol PK’s assets. The total facility amount is Rs. 53,000,000 188,925 Nil 24.0 14.0 This facility requires NetSol PK to maintain a long-term debt equity ratio of 60:40 and a current ratio of 1:1. As of March 31, 2023, NetSol PK was in compliance with this covenant (6) The Company’s subsidiary, NetSol PK, has an export refinance facility with Samba Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every nine months. The total facility amount is Rs. 380,000,000 1,339,936 380,000,000 1,850,409 10.0 3.0 During the tenure of the loan, the facilities from Samba Bank Limited require NetSol PK to maintain at a minimum a current ratio of 1:1, an interest coverage ratio of 4 times, a leverage ratio of 2 times, and a debt service coverage ratio of 4 times. As of March 31, 2023, NetSol PK was in compliance with these covenants (7) The Company’s subsidiary, NetSol PK, has an export refinance facility with Habib Metro Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every nine months. The total facility amount is Rs. 900,000,000 3,172,253 900,000,000 4,382,548 700,000,000 2,467,308 700,000,000 3,408,648 10.0 3.0 (8) The Company’s subsidiary, NetSol PK, availed sale and leaseback financing from First Habib Modaraba secured by the transfer of the vehicles’ title. As of March 31, 2023, NetSol PK used Rs. 101,834,660 358,939 209,543 149,396 127,140,038 619,108 429,882 189,226 9.0 16.0 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements March 31, 2023 (Unaudited) (9) In March 2019, the Company’s subsidiary, VLS, entered into a loan agreement. The loan amount was £ 69,549 85,863 1,349 1,665 17,773 31,204 12,865 18,339 6.14 (10) The Company’s subsidiary, VLS, finances Directors’ and Officers’ (“D&O”) liability insurance, and the $ 22,594 118,026 9.7 12.7 (11) The Company leases various fixed assets under finance lease arrangements expiring in various years through 2025. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are secured by the assets themselves. Depreciation of assets under finance leases is included in depreciation expense for the three and nine months ended March 31, 2023 and 2022.
SCHEDULE OF AGGREGATE MINIMUM FUTURE LEASE PAYMENTS UNDER CAPITAL LEASES	Following are the aggregate minimum future lease payments under finance leases as of March 31, 2023: SCHEDULE OF AGGREGATE MINIMUM FUTURE LEASE PAYMENTS UNDER CAPITAL LEASES Amount Minimum Lease Payments Within year 1 $ 33,135 Within year 2 6,052 Total Minimum Lease Payments 39,187 Interest Expense relating to future periods (3,160 ) Present Value of minimum lease payments 36,027 Less: Current portion (30,327 ) Current portion of loans and obligations under finance leases Non-Current portion $ 5,700 Loans and obligations under finance leases; less current maturities
SCHEDULE OF AGGREGATE FUTURE LONG TERM DEBT PAYMENTS	Following are the aggregate future long term debt payments as of March 31, 2023 SCHEDULE OF AGGREGATE FUTURE LONG TERM DEBT PAYMENTS Amount Loan Payments Within year 1 $ 167,169 Within year 2 156,040 Within year 3 53,503 Total Loan Payments 376,712 Less: Current portion (167,169 ) Non-Current portion $ 209,543

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	9 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
SUMMARY OF IDENTIFIABLE ASSETS	The following table presents a summary of identifiable assets as of March 31, 2023 and June 30, 2022: SUMMARY OF IDENTIFIABLE ASSETS As of As of March 31, 2023 June 30, 2022 Identifiable assets: Corporate headquarters $ 1,633,771 $ 844,178 North America 6,332,955 6,442,219 Europe 8,351,282 8,727,530 Asia - Pacific 43,231,859 56,594,705 Consolidated $ 59,549,867 $ 72,608,632
SUMMARY OF INVESTMENT UNDER EQUITY METHOD	The following table presents a summary of investment under equity method as of March 31, 2023 and June 30, 2022: SUMMARY OF INVESTMENT UNDER EQUITY METHOD As of As of March 31, 2023 June 30, 2022 Investment in associates under equity method: Asia - Pacific $ 1,066,878 $ 1,059,368 Consolidated $ 1,066,878 $ 1,059,368
SUMMARY OF OPERATING INFORMATION	The following table presents a summary of operating information for the three and nine months ended March 31: SUMMARY OF OPERATING INFORMATION For the Three Months For the Nine Months Ended March 31, Ended March 31, 2023 2022 2023 2022 Revenues from unaffiliated customers: North America $ 1,365,556 $ 1,113,820 $ 4,088,696 $ 3,104,433 Europe 2,550,372 2,088,918 7,643,408 7,483,911 Asia - Pacific 9,590,461 11,607,088 26,870,762 33,115,205 13,506,389 14,809,826 38,602,866 43,703,549 Revenue from affiliated customers Asia - Pacific - - - - - - - - Consolidated $ 13,506,389 $ 14,809,826 $ 38,602,866 $ 43,703,549 Intercompany revenue Europe $ 103,249 $ 105,668 $ 292,210 $ 349,345 Asia - Pacific 2,985,506 3,104,913 7,260,557 6,439,377 Eliminated $ 3,088,755 $ 3,210,581 $ 7,552,767 $ 6,788,722 Net income (loss) after taxes and before non-controlling interest: Corporate headquarters $ 289,652 $ (394,375 ) $ 919,914 $ (127,742 ) North America (3,702 ) (86,722 ) 82,677 (213,730 ) Europe (103,219 ) (575,533 ) (586,607 ) (973,972 ) Asia - Pacific 4,059,800 1,039,158 986,613 4,287,015 Consolidated $ 4,242,531 $ (17,472 ) $ 1,402,597 $ 2,971,571 Depreciation and amortization: North America $ 657 $ 451 $ 1,866 $ 1,544 Europe 65,584 88,987 207,186 288,481 Asia - Pacific 716,725 858,495 2,310,417 2,579,646 Consolidated $ 782,966 $ 947,933 $ 2,519,469 $ 2,869,671 Interest expense: Corporate headquarters $ 7,834 $ 8,105 $ 16,226 $ 28,111 North America - - - - Europe 1,806 1,766 8,146 8,050 Asia - Pacific 178,497 76,045 487,738 241,576 Consolidated $ 188,137 $ 85,916 $ 512,110 $ 277,737 Income tax expense: Corporate headquarters $ - $ - $ - $ (43,354 ) North America 1,600 400 1,600 46,154 Europe 2,822 - 2,822 9,524 Asia - Pacific 223,296 157,204 636,700 514,413 Consolidated $ 227,718 $ 157,604 $ 641,122 $ 526,737
SUMMARY OF CAPITAL EXPENDITURES	The following table presents a summary of capital expenditures for the nine months ended March 31: SUMMARY OF CAPITAL EXPENDITURES For the Nine Months Ended March 31, 2023 2022 Capital expenditures: North America $ 4,880 $ - Europe 31,519 134,450 Asia - Pacific 1,538,660 1,546,406 Consolidated $ 1,575,059 $ 1,680,856

NON-CONTROLLING INTEREST IN S_2

NON-CONTROLLING INTEREST IN SUBSIDIARY (Tables)	9 Months Ended
	Mar. 31, 2023
Noncontrolling Interest [Abstract]
SCHEDULE OF BALANCE OF NON-CONTROLLING INTEREST	The Company had non-controlling interests in several of its subsidiaries. The balance of non-controlling interest was as follows: SCHEDULE OF BALANCE OF NON-CONTROLLING INTEREST SUBSIDIARY Non-Controlling Interest % Non-Controlling Interest at March 31, NetSol PK 32.38 % $ 3,630,559 NetSol-Innovation 32.38 % (123,724 ) NAMECET 32.38 % (3,608 ) NetSol Thai 0.006 % (197 ) OTOZ Thai 10.95 % (43,064 ) OTOZ 10.94 % (156,930 ) Total $ 3,303,036 SUBSIDIARY Non-Controlling Interest % Non-Controlling Interest at NetSol PK 32.38 % $ 5,479,905 NetSol-Innovation 32.38 % 49,146 NetSol Thai 0.006 % (196 ) OTOZ Thai 5.60 % (30,768 ) OTOZ 5.59 % (47,698 ) Total $ 5,450,389
SCHEDULE OF CHANGE IN OWNERSHIP INTEREST	SCHEDULE OF CHANGE IN OWNERSHIP INTEREST 2023 2022 2023 2022 For the Three Months For the Nine Months Ended March 31, Ended March 31, 2023 2022 2023 2022 Net income (loss) attributable to NetSol $ 2,544,623 $ (278,470 ) $ (169,032 ) $ 1,316,284 Transfer (to) from non-controlling interest Increase in paid-in capital for issuance of 191,011 - - 120,565 - Net transfer (to) from non-controlling interest - - 120,565 - Change from net income (loss) attributable to NetSol and transfer (to) from non-controlling interest $ 2,544,623 $ (278,470 ) $ (48,467 ) $ 1,316,284

SCHEDULE OF FAIR VALUE OF FINAN

SCHEDULE OF FAIR VALUE OF FINANCIAL ASSETS MEASURED ON RECURRING BASIS (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Platform Operator, Crypto-Asset [Line Items]
Revenues in excess of billings - long term		$ 853,601
Total		853,601
Fair Value, Inputs, Level 1 [Member]
Platform Operator, Crypto-Asset [Line Items]
Revenues in excess of billings - long term
Total
Fair Value, Inputs, Level 2 [Member]
Platform Operator, Crypto-Asset [Line Items]
Revenues in excess of billings - long term
Total
Fair Value, Inputs, Level 3 [Member]
Platform Operator, Crypto-Asset [Line Items]
Revenues in excess of billings - long term		853,601
Total		$ 853,601

SCHEDULE OF FAIR VALUE OF FIN_2

SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS RECONCILIATION (Details)	9 Months Ended
	Mar. 31, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	$ 853,601
Amortization during the period	28,029
Transfers to short term	(890,794)
Effect of Translation Adjustment	9,164
Ending balance
Revenue in Excess of Billing Long Term [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	881,940
Amortization during the period
Transfers to short term	(890,794)
Effect of Translation Adjustment	8,854
Ending balance
Fair Value Discount [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	(28,339)
Amortization during the period	28,029
Transfers to short term
Effect of Translation Adjustment	310
Ending balance

ACCOUNTING POLICIES (Details Na

ACCOUNTING POLICIES (Details Narrative)	Mar. 31, 2023 USD ($)	Mar. 31, 2023 CNY (¥)	Mar. 31, 2023 GBP (£)	Jun. 30, 2022 USD ($)
Uninsured deposits related to cash deposits	$ 13,089,660			$ 22,758,963
CHINA
Cash, FDIC insured amount	72,780	¥ 500,000
UNITED KINGDOM
Cash, FDIC insured amount	$ 104,938		£ 85,000

SCHEDULE OF DISAGGREGATED REVEN

SCHEDULE OF DISAGGREGATED REVENUE BY CATEGORY (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total net revenue	$ 13,506,389	$ 14,809,826	$ 38,602,866	$ 43,703,549
License [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	1,982,985	1,620,827	2,248,829	3,586,874
Subscription And Support [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	6,656,082	6,554,540	19,175,585	22,159,798
Service [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	4,867,322	6,634,459	17,178,452	17,956,877
Core Revenue [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	12,508,511	13,592,002	35,533,685	39,887,101
Core Revenue [Member] | License [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	1,982,985	1,620,827	2,248,829	3,586,874
Core Revenue [Member] | Subscription And Support [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	6,656,082	6,554,540	19,175,585	22,159,798
Core Revenue [Member] | Service [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	3,869,444	5,416,635	14,109,271	14,140,429
Non Core Revenue [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	997,878	1,217,824	3,069,181	3,816,448
Non Core Revenue [Member] | Service [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	$ 997,878	$ 1,217,824	$ 3,069,181	$ 3,816,448

SCHEDULE OF REVENUES IN EXCESS

SCHEDULE OF REVENUES IN EXCESS OF BILLINGS AND DEFERRED REVENUE (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenues in excess of billings	$ 13,741,884	$ 15,425,377
Unearned revenue	$ 4,167,655	$ 4,901,562

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative)	3 Months Ended	9 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Deferred revenue, revenue recognized	$ 484,239	$ 3,268,811
Unsatisfied performance obligation	33,600,000	33,600,000
Contracted but unsatisfied performance obligations, next twelve months	$ 15,200,000	$ 15,200,000

EARNINGS PER SHARE (Details Nar

EARNINGS PER SHARE (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Net income (loss) per share:
Earnings per share outstanding dilutive	0	0	0	0

OTHER COMPREHENSIVE INCOME AN_2

OTHER COMPREHENSIVE INCOME AND FOREIGN CURRENCY (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
Other Comprehensive Income And Foreign Currency
Accumulated other comprehensive loss	$ 47,192,994		$ 47,192,994		$ 39,363,085
Net translation adjustment	$ (5,181,654)	$ (1,804,777)	$ (7,829,909)	$ (4,871,925)

MAJOR CUSTOMERS (Details Narrat

MAJOR CUSTOMERS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
Concentration Risk [Line Items]
Revenue	$ 13,506,389	$ 14,809,826	$ 38,602,866	$ 43,703,549
Revenues in excess of billings	13,741,884		13,741,884		$ 14,571,776
Daimler Financial Services [Member]
Concentration Risk [Line Items]
Revenues in excess of billings	2,016,970		2,016,970		365,863
BMW Financial (BMW) [Member]
Concentration Risk [Line Items]
Revenues in excess of billings	2,002,579		$ 2,002,579		2,199,381
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Daimler Financial Services [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			28%	35.90%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | BMW Financial (BMW) [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			8.30%	7.30%
Accounts Receivable [Member] | Daimler Financial Services [Member]
Concentration Risk [Line Items]
Accounts receivable, gross	2,284,979		$ 2,284,979		2,005,463
Accounts Receivable [Member] | BMW Financial (BMW) [Member]
Concentration Risk [Line Items]
Accounts receivable, gross	$ 1,104,698		1,104,698		$ 2,498,645
Daimler Financial Services [Member]
Concentration Risk [Line Items]
Revenue			10,824,636	$ 15,692,171
BMW Financial (BMW) [Member]
Concentration Risk [Line Items]
Revenue			$ 3,208,649	$ 3,203,536

SCHEDULE OF OTHER CURRENT ASSET

SCHEDULE OF OTHER CURRENT ASSETS (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses	$ 1,438,244	$ 1,389,370
Advance Income Tax	218,352	202,783
Employee Advances	64,454	87,627
Security Deposits	241,160	236,909
Other Receivables	188,157	21,581
Other Assets	449,165	285,091
Net Balance	$ 2,599,532	$ 2,223,361

SCHEDULE OF REVENUE IN EXCESS O

SCHEDULE OF REVENUE IN EXCESS OF BILLING (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Contractors [Abstract]
Revenues in excess of billings - long term		$ 881,940
Present value discount		(28,339)
Net Balance		$ 853,601

REVENUES IN EXCESS OF BILLING_3

REVENUES IN EXCESS OF BILLINGS – LONG TERM (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Construction Contractor, Receivable, after Year One, Interest Rate [Line Items]
Interest income	$ 9,372	$ 9,546	$ 28,029	$ 28,587
Minimum [Member]
Construction Contractor, Receivable, after Year One, Interest Rate [Line Items]
Interest rate discount			4.65%
Maximum [Member]
Construction Contractor, Receivable, after Year One, Interest Rate [Line Items]
Interest rate discount			6.25%

SCHEDULE OF PROPERTY AND EQUIPM

SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Property, Plant and Equipment [Line Items]
Subtotal	$ 18,307,788	$ 23,451,688
Accumulated Depreciation	(11,436,752)	(14,069,064)
Property and Equipment, Net	6,871,036	9,382,624
Office Furniture And Equipment [Member]
Property, Plant and Equipment [Line Items]
Subtotal	2,671,137	3,021,586
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Subtotal	9,023,276	11,388,856
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Subtotal	47,112	305,081
Building [Member]
Property, Plant and Equipment [Line Items]
Subtotal	3,537,674	4,818,650
Land [Member]
Property, Plant and Equipment [Line Items]
Subtotal	896,086	1,237,965
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Subtotal	1,920,072	2,503,990
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Subtotal	$ 212,431	$ 175,560

SUMMARY OF FIXED ASSETS HELD UN

SUMMARY OF FIXED ASSETS HELD UNDER CAPITAL LEASES (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Property, Plant and Equipment [Line Items]
Total	$ 47,112	$ 305,081
Less:  Accumulated Depreciation - Net	(15,218)	(145,658)
Fixed assets held under finance leases, Total	31,894	159,423
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total	$ 47,112	$ 305,081

SCHEDULE OF FINANCE LEASE TERM

SCHEDULE OF FINANCE LEASE TERM (Details)	Mar. 31, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Weighted average remaining lease term - Finance leases	1 year 5 months 1 day	2 years 4 months 20 days
Weighted average discount rate - Finance leases	16.40%	12.50%

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 507,314	$ 540,822	$ 1,598,325	$ 1,608,007
Depreciation reflected in cost of revenues	$ 327,177	$ 334,476	$ 1,029,012	$ 974,526

SCHEDULE OF BALANCE SHEET INFOR

SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASE (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Leases
Operating lease assets, net	$ 1,102,729	$ 969,163
Operating, Current	421,223	548,678
Operating, Non-current	651,443	447,260
Total Lease Liabilities	$ 1,072,666	$ 995,938

SCHEDULE OF COMPONENTS OF LEASE

SCHEDULE OF COMPONENTS OF LEASE COST (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Leases
Amortization of finance lease assets	$ 7,706	$ 16,273	$ 13,701	$ 59,201
Interest on finance lease obligation	1,043	5,632	4,402	13,780
Operating lease cost	115,392	137,270	346,993	518,048
Short term lease cost	39,356	128,008	143,978	166,789
Sub lease income	(8,099)	(8,907)	(23,697)	(27,012)
Total lease cost	$ 155,398	$ 278,276	$ 485,377	$ 730,806

SCHEDULE OF LEASE TERM AND DISC

SCHEDULE OF LEASE TERM AND DISCOUNT RATE (Details)	Mar. 31, 2023	Jun. 30, 2022
Leases
Weighted average remaining lease term - Operating leases	3 years 4 months 20 days	3 years 4 months 2 days
Weighted average discount rate - Operating leases	3.30%	4.20%

SCHEDULE OF SUPPLEMENTAL DISCLO

SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION RELATED TO LEASES (Details) - USD ($)	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases
Operating cash flows related to operating leases	$ 358,778	$ 504,447
Operating cash flows related to finance leases	4,472	3,553
Financing cash flows related finance leases	$ 24,362	$ 55,399

SCHEDULE OF MATURITIES OF OPERA

SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Leases
Within year 1	$ 450,939
Within year 2	367,359
Within year 3	213,770
Within year 4	92,657
Within year 5	465
Thereafter	582
Total Lease Payments	1,125,772
Less: Imputed interest	(53,106)
Present Value of lease liabilities	1,072,666	$ 995,938
Less:  Current portion	(421,223)	(548,678)
Non-Current portion	$ 651,443	$ 447,260

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Lease Agreement [Member]
Operating lease income	$ 8,099	$ 8,907	$ 23,697	$ 27,012
Minimum [Member]
Finance lease term	1 year		1 year
Operating lease term	1 year		1 year
Maximum [Member]
Finance lease term	10 years		10 years
Operating lease term	10 years		10 years

SCHEDULE OF LONG TERM INVESTMEN

SCHEDULE OF LONG TERM INVESTMENT (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Investments, All Other Investments [Abstract]
Gross investment	$ 1,800,000	$ 1,800,000
Cumulative net loss on investment	(733,122)	(740,632)
Net investment	$ 1,066,878	$ 1,059,368

LONG TERM INVESTMENT (Details N

LONG TERM INVESTMENT (Details Narrative) - Drivemate Co Ltd [Member] - USD ($)		3 Months Ended		9 Months Ended
	Apr. 25, 2019	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Drivemate Agreement [Member]
Number of shares purchased	5,469
Number of shares purchased, value	$ 1,800,000
Debt instrument, description				Pursuant to the agreement, the number of shares to be issued is adjusted as necessary to result in an equity ownership equal to 30% of the issued and outstanding shares at the final payment date. As of March 31, 2023, the Company has been issued 8,178 shares equal to 30% of Drivemate. Per the Drivemate Agreement, the Company appointed two directors to the Drivemate board. The Company determined that it met the significant influence criteria since two of the four directors are appointed by the Company and the Company owns 30% of Drivemate; therefore, the Company accounts for the investment using the equity method of accounting
Share of net income loss from equity investment		$ 2,377	$ 4,712	$ 7,510	$ 54,193
Drivemate Agreement [Member] | Service [Member]
Number of shares purchased, value	1,300,000
Drivemate Agreement [Member] | Service [Member] | Payment [Member]
Number of shares purchased, value	1,300,000
Drivemate Agreement [Member] | Cash [Member]
Number of shares purchased, value	500,000
Drivemate Agreement [Member] | Cash [Member] | Payment [Member]
Number of shares purchased, value	$ 500,000
Drivemate Agreement [Member]
Equity interest, percentage	30%

SCHEDULE OF INTANGIBLE ASSETS (

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Product Licenses - Cost	$ 47,244,997	$ 47,244,997
Effect of Translation Adjustment	(24,664,606)	(19,914,206)
Accumulated Amortization	(22,198,513)	(25,743,121)
Net Balance	$ 381,878	$ 1,587,670

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 381,878		$ 381,878		$ 1,587,670
Product Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	381,878		381,878
Amortization expenses of intangible assets	$ 275,652	$ 407,111	$ 921,144	$ 1,261,664

SCHEDULE OF ACCOUNTS PAYABLE AN

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Payables and Accruals [Abstract]
Accounts Payable	$ 987,963	$ 1,175,527
Accrued Liabilities	4,102,715	3,507,415
Accrued Payroll	1,182,049	1,397,605
Accrued Payroll Taxes	150,020	153,416
Taxes Payable	325,586	328,755
Other Payable	349,873	250,823
Total	$ 7,098,206	$ 6,813,541

SCHEDULE OF COMPONENTS OF NOTES

SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES (Details) - USD ($)		Mar. 31, 2023	Jun. 30, 2022
Debt Instrument [Line Items]
Total		$ 6,148,260	$ 8,974,797
Current Maturities		5,938,717	8,532,050
Long-Term Maturities		209,543	442,747
Subsidiary Finance Leases, Total	[1]	36,027	68,571
Subsidiary Finance Leases, Current Maturities	[1]	30,327	35,095
Subsidiary Finance Leases, Long-Term Maturities	[1]	5,700	33,476
Total		6,184,287	9,043,368
Current Maturities		5,969,044	8,567,145
Long-Term Maturities		215,243	476,223
D&O Insurance [Member]
Debt Instrument [Line Items]
Total	[2]	179,887	89,552
Current Maturities	[2]	179,887	89,552
Long-Term Maturities	[2]
Bank Overdraft Facility [Member]
Debt Instrument [Line Items]
Total	[3]
Current Maturities	[3]
Long-Term Maturities	[3]
Term Finance Facility [Member]
Debt Instrument [Line Items]
Total	[4]		423,101
Current Maturities	[4]		423,101
Long-Term Maturities	[4]
Loan Payable Bank - Export Refinance [Member]
Debt Instrument [Line Items]
Total	[5]	1,762,363	2,434,749
Current Maturities	[5]	1,762,363	2,434,749
Long-Term Maturities	[5]
Loan Payable Bank - Running Finance [Member]
Debt Instrument [Line Items]
Total	[6]
Current Maturities	[6]
Long-Term Maturities	[6]
Loan Payable Bank - Export Refinance II [Member]
Debt Instrument [Line Items]
Total	[7]	1,339,396	1,850,409
Current Maturities	[7]	1,339,396	1,850,409
Long-Term Maturities	[7]
Loan Payable Bank - Export Refinance III [Member]
Debt Instrument [Line Items]
Total	[8]	2,467,308	3,408,648
Current Maturities	[8]	2,467,308	3,408,648
Long-Term Maturities	[8]
Sale and Lease Back Financing [Member]
Debt Instrument [Line Items]
Total	[9]	358,939	619,108
Current Maturities	[9]	149,396	189,226
Long-Term Maturities	[9]	209,543	429,882
Term Finance Facility One [Member]
Debt Instrument [Line Items]
Total	[10]	17,773	31,204
Current Maturities	[10]	17,773	18,339
Long-Term Maturities	[10]		12,865
Insurance Financing [Member]
Debt Instrument [Line Items]
Total	[11]	22,594	118,026
Current Maturities	[11]	22,594	118,026
Long-Term Maturities	[11]
[1]The Company leases various fixed assets under finance lease arrangements expiring in various years through 2025. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are secured by the assets themselves. Depreciation of assets under finance leases is included in depreciation expense for the three and nine months ended March 31, 2023 and 2022.[2]The Company finances Directors’ and Officers’ (“D&O”) liability insurance and Errors and Omissions (“E&O”) liability insurance, for which the D&O and E&O balances are renewed on an annual basis and, as such, are recorded in current maturities. The interest rate on these financings were ranging from 5.0 7.9 5.0 7.0 300,000 370,370 5.5 Nil nil nil 86,887,974 423,101 3.0 500,000,000 1,762,363 500,000,000 2,434,749 17.0 3.0 53,000,000 188,925 Nil 24.0 14.0 380,000,000 1,339,936 380,000,000 1,850,409 10.0 3.0 900,000,000 3,172,253 900,000,000 4,382,548 700,000,000 2,467,308 700,000,000 3,408,648 10.0 3.0 101,834,660 358,939 209,543 149,396 127,140,038 619,108 429,882 189,226 9.0 16.0 69,549 85,863 1,349 1,665 17,773 31,204 12,865 18,339 6.14 22,594 118,026 9.7 12.7

SCHEDULE OF COMPONENTS OF NOT_2

SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES (Details) (Parenthetical)			9 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2019 GBP (£)	Mar. 31, 2023 USD ($)	Mar. 31, 2023 INR (₨)	Mar. 31, 2023 GBP (£)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 INR (₨)	Jun. 30, 2022 GBP (£)	Mar. 31, 2019 GBP (£)
Line of Credit Facility [Line Items]
Long term liabilities			$ 376,712
Virtual Lease Services Limited [Member] | Loan Agreement [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 17,773			$ 31,204
Debt instrument, interest rate			6.14%	6.14%	6.14%	6.14%	6.14%	6.14%
Line of credit	$ 85,863								£ 69,549
Line of credit, current						$ 18,339
Line of credit monthly payments	$ 1,665	£ 1,349
Long term liabilities						12,865
Virtual Lease Services Limited [Member] | Insurance Financing [Member] | Directors and Officers [Member]
Line of Credit Facility [Line Items]
Line of credit, current			$ 22,594			118,026
HSBC Bank [Member] | NTE [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 370,370		£ 300,000
Debt instrument, interest rate			5.50%	5.50%	5.50%
Line of credit | £
Commitment fee percentage			200%
Askari Bank Limited [Member] | NetSol PK [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 1,762,363	₨ 500,000,000		$ 2,434,749	₨ 500,000,000
Debt instrument, interest rate			17%	17%	17%	3%	3%	3%
Askari Bank Limited [Member] | NetSol PK [Member] | Refinance Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity						$ 423,101	₨ 86,887,974
Debt instrument, interest rate			3%	3%	3%	3%	3%	3%
Askari Bank Limited [Member] | NetSol PK [Member] | Running Finance Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 188,925	₨ 53,000,000
Debt instrument, interest rate			24%	24%	24%	14%	14%	14%
Line of credit | ₨
Debt instrument covenant description			This facility requires NetSol PK to maintain a long-term debt equity ratio of 60:40 and a current ratio of 1:1. As of March 31, 2023, NetSol PK was in compliance with this covenant
Samba Bank Limited [Member] | NetSol PK [Member] | Refinance Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 1,339,936	₨ 380,000,000		$ 1,850,409	₨ 380,000,000
Debt instrument, interest rate			10%	10%	10%	3%	3%	3%
Debt instrument covenant description			During the tenure of the loan, the facilities from Samba Bank Limited require NetSol PK to maintain at a minimum a current ratio of 1:1, an interest coverage ratio of 4 times, a leverage ratio of 2 times, and a debt service coverage ratio of 4 times. As of March 31, 2023, NetSol PK was in compliance with these covenants
Habib Metro Bank Limited [Member] | Refinance Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 3,172,253	₨ 900,000,000		$ 4,382,548	₨ 900,000,000
Habib Metro Bank Limited [Member] | NetSol PK [Member] | Refinance Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 2,467,308	₨ 700,000,000		$ 3,408,648	₨ 700,000,000
Debt instrument, interest rate			10%	10%	10%	3%	3%	3%
Habib Metro Bank Limited [Member] | NetSol PK [Member] | Sale and Lease Back Financing [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 358,939	₨ 101,834,660		$ 619,108	₨ 127,140,038
Debt instrument, interest rate			9%	9%	9%	16%	16%	16%
Line of credit, long term			$ 209,543			$ 429,882
Line of credit, current			$ 149,396			$ 189,226
Maximum [Member] | Virtual Lease Services Limited [Member] | Insurance Financing [Member] | Directors and Officers [Member]
Line of Credit Facility [Line Items]
Debt instrument, interest rate			9.70%	9.70%	9.70%	12.70%	12.70%	12.70%
Directors and Officers and Error and Omissions Liability Insurance [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Line of credit facility interest rate			5%	5%	5%	5%	5%	5%
Directors and Officers and Error and Omissions Liability Insurance [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Line of credit facility interest rate			7.90%	7.90%	7.90%	7%	7%	7%

SCHEDULE OF AGGREGATE MINIMUM F

SCHEDULE OF AGGREGATE MINIMUM FUTURE LEASE PAYMENTS UNDER CAPITAL LEASES (Details)	Mar. 31, 2023 USD ($)
Debt Disclosure [Abstract]
Within year 1	$ 33,135
Within year 2	6,052
Total Minimum Lease Payments	39,187
Interest Expense relating to future periods	(3,160)
Present Value of minimum lease payments	36,027
Less: Current portion	$ (30,327)
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of loans and obligations under finance leases
Non-Current portion	$ 5,700
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Loans and obligations under finance leases; less current maturities

SCHEDULE OF AGGREGATE FUTURE LO

SCHEDULE OF AGGREGATE FUTURE LONG TERM DEBT PAYMENTS (Details)	Mar. 31, 2023 USD ($)
Debt Disclosure [Abstract]
Within year 1	$ 167,169
Within year 2	156,040
Within year 3	53,503
Total Loan Payments	376,712
Less: Current portion	(167,169)
Non-Current portion	$ 209,543

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	3 Months Ended						9 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Mar. 31, 2023
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Issuance of common stock value for services	$ 39,750	$ 39,750	$ 39,750	$ 22,225	$ 9,900	$ 12,009
Board of Directors [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Issuance of common stock shares for services	15,057						41,472
Issuance of common stock value for services	$ 39,750						$ 119,250

SUMMARY OF IDENTIFIABLE ASSETS

SUMMARY OF IDENTIFIABLE ASSETS (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Identifiable assets	$ 59,549,867	$ 72,608,632
Corporate Headquarters [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Identifiable assets	1,633,771	844,178
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Identifiable assets	6,332,955	6,442,219
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Identifiable assets	8,351,282	8,727,530
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Identifiable assets	$ 43,231,859	$ 56,594,705

SUMMARY OF INVESTMENT UNDER EQU

SUMMARY OF INVESTMENT UNDER EQUITY METHOD (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Equity method investments	$ 1,066,878	$ 1,059,368
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Equity method investments	$ 1,066,878	$ 1,059,368

SUMMARY OF OPERATING INFORMATIO

SUMMARY OF OPERATING INFORMATION (Details) - USD ($)	3 Months Ended						9 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Total net revenues	$ 13,506,389			$ 14,809,826			$ 38,602,866	$ 43,703,549
Net income (loss) after taxes and before non-controlling interest	4,242,531	$ (2,401,963)	$ (437,971)	(17,472)	$ 2,438,548	$ 550,495	1,402,597	2,971,571
Depreciation and amortization	782,966			947,933			2,519,469	2,869,671
Interest expense	188,137			85,916			512,110	277,737
Income tax expense	227,718			157,604			641,122	526,737
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Total net revenues	3,088,755			3,210,581			7,552,767	6,788,722
North America [Member]
Segment Reporting Information [Line Items]
Net income (loss) after taxes and before non-controlling interest	(3,702)			(86,722)			82,677	(213,730)
Depreciation and amortization	657			451			1,866	1,544
Interest expense
Income tax expense	1,600			400			1,600	46,154
Europe [Member]
Segment Reporting Information [Line Items]
Net income (loss) after taxes and before non-controlling interest	(103,219)			(575,533)			(586,607)	(973,972)
Depreciation and amortization	65,584			88,987			207,186	288,481
Interest expense	1,806			1,766			8,146	8,050
Income tax expense	2,822						2,822	9,524
Europe [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Total net revenues	103,249			105,668			292,210	349,345
Asia Pacific [Member]
Segment Reporting Information [Line Items]
Net income (loss) after taxes and before non-controlling interest	4,059,800			1,039,158			986,613	4,287,015
Depreciation and amortization	716,725			858,495			2,310,417	2,579,646
Interest expense	178,497			76,045			487,738	241,576
Income tax expense	223,296			157,204			636,700	514,413
Asia Pacific [Member] | Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Total net revenues	2,985,506			3,104,913			7,260,557	6,439,377
Corporate Headquaters [Member]
Segment Reporting Information [Line Items]
Net income (loss) after taxes and before non-controlling interest	289,652			(394,375)			919,914	(127,742)
Interest expense	7,834			8,105			16,226	28,111
Income tax expense								(43,354)
Unaffiliated Customers [Member]
Segment Reporting Information [Line Items]
Total net revenues	13,506,389			14,809,826			38,602,866	43,703,549
Unaffiliated Customers [Member] | North America [Member]
Segment Reporting Information [Line Items]
Total net revenues	1,365,556			1,113,820			4,088,696	3,104,433
Unaffiliated Customers [Member] | Europe [Member]
Segment Reporting Information [Line Items]
Total net revenues	2,550,372			2,088,918			7,643,408	7,483,911
Unaffiliated Customers [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Total net revenues	9,590,461			11,607,088			26,870,762	33,115,205
Affiliated Customers [Member]
Segment Reporting Information [Line Items]
Total net revenues
Affiliated Customers [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Total net revenues

SUMMARY OF CAPITAL EXPENDITURES

SUMMARY OF CAPITAL EXPENDITURES (Details) - USD ($)	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Capital expenditures	$ 1,575,059	$ 1,680,856
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Capital expenditures	4,880
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Capital expenditures	31,519	134,450
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Capital expenditures	$ 1,538,660	$ 1,546,406

OPERATING SEGMENTS (Details Nar

OPERATING SEGMENTS (Details Narrative)	9 Months Ended
	Mar. 31, 2023 Segments
Segment Reporting [Abstract]
Number of operating segments	3

SCHEDULE OF BALANCE OF NON-CONT

SCHEDULE OF BALANCE OF NON-CONTROLLING INTEREST (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-Controlling Interest	$ 3,303,036	$ 5,450,389
NetSol PK [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-Controlling Interest, Percentage	32.38%	32.38%
Non-Controlling Interest	$ 3,630,559	$ 5,479,905
NetSol Innovation [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-Controlling Interest, Percentage	32.38%	32.38%
Non-Controlling Interest	$ (123,724)	$ 49,146
NAMECET [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-Controlling Interest, Percentage	32.38%
Non-Controlling Interest	$ (3,608)
NetSol Thai [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-Controlling Interest, Percentage	0.006%	0.006%
Non-Controlling Interest	$ (197)	$ (196)
OTOZ Thai [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-Controlling Interest, Percentage	10.95%	5.60%
Non-Controlling Interest	$ (43,064)	$ (30,768)
OTOZ [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-Controlling Interest, Percentage	10.94%	5.59%
Non-Controlling Interest	$ (156,930)	$ (47,698)

SCHEDULE OF CHANGE IN OWNERSHIP

SCHEDULE OF CHANGE IN OWNERSHIP INTEREST (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Net income (loss) attributable to NetSol	$ 2,544,623	$ (278,470)	$ (169,032)	$ 1,316,284
Net transfer (to) from non-controlling interest	(1,697,908)	(260,998)	(1,571,629)	(1,655,287)
OTOZ and OTOZ Thai [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Net income (loss) attributable to NetSol	2,544,623	(278,470)	(169,032)	1,316,284
Increase in paid-in capital for issuance of 191,011 shares of OTOZ Inc common stock			120,565
Net transfer (to) from non-controlling interest			120,565
Change from net income (loss) attributable to NetSol and transfer (to) from non-controlling interest	$ 2,544,623	$ (278,470)	$ (48,467)	$ 1,316,284

SCHEDULE OF CHANGE IN OWNERSH_2

SCHEDULE OF CHANGE IN OWNERSHIP INTEREST (Details) (Parenthetical)	9 Months Ended
	Mar. 31, 2023 shares
OTOZ [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Number of shares purchased, Shares	191,011

NON-CONTROLLING INTEREST IN S_3

NON-CONTROLLING INTEREST IN SUBSIDIARY (Details Narrative) - shares	9 Months Ended
	Mar. 31, 2023	Jun. 30, 2022
OTOZ [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Number of common shares issued	191,011
Non-controlling interest, percentage	10.94%	5.59%
OTOZ [Member] | Minimum [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-controlling interest, percentage	5.59%
OTOZ [Member] | Maximum [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-controlling interest, percentage	10.94%
OTOZ Thai [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-controlling interest, percentage	10.95%	5.60%

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax provision	$ 227,718	$ 157,604	$ 641,122	$ 526,737