NetSol (NTWK) 10-Q 7 Nov 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Sep. 30, 2023	Nov. 03, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q1
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		11,372,819

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Current assets:
Cash and cash equivalents	$ 16,551,677	$ 15,533,254
Accounts receivable, net of allowance of $416,435 and $420,354	6,870,956	11,714,422
Revenues in excess of billings, net of allowance of $116,425 and $1,380,141	13,008,285	12,377,677
Other current assets	2,244,490	1,978,514
Total current assets	38,675,408	41,603,867
Revenues in excess of billings, net - long term	724,875
Property and equipment, net	5,770,794	6,161,186
Right of use assets - operating leases	1,359,106	1,151,575
Other assets	32,326	32,327
Intangible assets, net		127,931
Goodwill	9,302,524	9,302,524
Total assets	55,865,033	58,379,410
Current liabilities:
Accounts payable and accrued expenses	6,802,879	6,552,181
Current portion of loans and obligations under finance leases	5,756,553	5,779,510
Current portion of operating lease obligations	538,363	505,237
Unearned revenue	5,170,335	7,932,306
Total current liabilities	18,268,130	20,769,234
Loans and obligations under finance leases; less current maturities	137,847	176,229
Operating lease obligations; less current maturities	795,935	652,194
Total liabilities	19,201,912	21,597,657
Stockholders’ equity:
Preferred stock, $.01 par value; 500,000 shares authorized;
Common stock, $.01 par value; 14,500,000 shares authorized; 12,311,850 shares issued and 11,372,819  outstanding as of September 30, 2023 12,284,887 shares issued and 11,345,856  outstanding as of June 30, 2023	123,120	122,850
Additional paid-in-capital	128,536,132	128,476,048
Treasury stock (at cost, 939,031 shares as of September 30, 2023 and June 30, 2023)	(3,920,856)	(3,920,856)
Accumulated deficit	(44,865,296)	(44,896,186)
Other comprehensive loss	(46,411,702)	(45,975,156)
Total NetSol stockholders’ equity	33,461,398	33,806,700
Non-controlling interest	3,201,723	2,975,053
Total stockholders’ equity	36,663,121	36,781,753
Total liabilities and stockholders' equity	$ 55,865,033	$ 58,379,410

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 416,435	$ 420,354
Revenues in excess of billings, allowance	$ 116,425	$ 1,380,141
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	12,311,850	12,284,887
Common stock, shares outstanding	11,372,819	11,345,856
Treasury stock, shares	939,031	939,031

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Net Revenues:
Total net revenues	$ 14,242,181	$ 12,706,119
Cost of revenues	8,080,164	8,454,122
Gross profit	6,162,017	4,251,997
Operating expenses:
Selling, general and administrative	5,432,969	5,678,561
Research and development cost	378,419	469,627
Total operating expenses	5,811,388	6,148,188
Income (loss) from operations	350,629	(1,896,191)
Other income and (expenses)
Interest expense	(276,017)	(121,610)
Interest income	414,718	431,857
Gain (loss) on foreign currency exchange transactions	(134,253)	1,315,705
Other income (expense)	57,881	25,616
Total other income (expenses)	62,329	1,651,568
Net income (loss) before income taxes	412,958	(244,623)
Income tax provision	(121,895)	(193,348)
Net income (loss)	291,063	(437,971)
Non-controlling interest	(260,173)	(182,758)
Net income (loss) attributable to NetSol	$ 30,890	$ (620,729)
Net income (loss) per share:
Basic	$ 0.003	$ (0.06)
Diluted	$ 0.003	$ (0.06)
Weighted average number of shares outstanding
Basic	11,345,856	11,257,539
Diluted	11,345,856	11,257,539
License [Member]
Net Revenues:
Total net revenues	$ 1,280,449	$ 249,960
Subscription and Support [Member]
Net Revenues:
Total net revenues	6,512,243	6,016,834
Service [Member]
Net Revenues:
Total net revenues	$ 6,449,489	$ 6,439,325

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net income (loss)	$ 30,890	$ (620,729)
Other comprehensive income (loss):
Translation adjustment	(470,049)	(4,151,519)
Translation adjustment attributable to non-controlling interest	33,503	1,233,469
Net translation adjustment	(436,546)	(2,918,050)
Comprehensive income (loss) attributable to NetSol	$ (405,656)	$ (3,538,779)

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
Balance at Jun. 30, 2022	$ 121,966	$ 128,218,247	$ (3,920,856)	$ (39,652,438)	$ (39,363,085)	$ 5,450,389	$ 50,854,223
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 (loss) for the year				(620,729)		182,758	(437,971)
Adjustment in APIC for change in subsidiary shares to non-controlling interest		120,565				(120,565)
Balance at Sep. 30, 2022	$ 122,093	128,420,519	(3,920,856)	(40,273,167)	(42,281,135)	4,279,113	46,346,567
Balance, shares at Sep. 30, 2022	12,209,230
Balance at Jun. 30, 2023	$ 122,850	128,476,048	(3,920,856)	(44,896,186)	(45,975,156)	2,975,053	36,781,753
Balance, shares at Jun. 30, 2023	12,284,887
Common stock issued for: Services	$ 270	48,530					48,800
Common stock issued for Services, shares	26,963
Fair value of subsidiary options issued		11,554					11,554
Foreign currency translation adjustment					(436,546)	(33,503)	(470,049)
Net income (loss) for the year				30,890		260,173	291,063
Balance at Sep. 30, 2023	$ 123,120	$ 128,536,132	$ (3,920,856)	$ (44,865,296)	$ (46,411,702)	$ 3,201,723	$ 36,663,121
Balance, shares at Sep. 30, 2023	12,311,850

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income (loss)	$ 291,063	$ (437,971)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	530,786	845,003
Provision for bad debts	7,880	(47,479)
Gain on sale of assets	(98)	(23,296)
Stock based compensation	60,354	81,834
Changes in operating assets and liabilities:
Accounts receivable	4,608,881	815,132
Revenues in excess of billing	(1,478,386)	337,996
Other current assets	92,686	(340,390)
Accounts payable and accrued expenses	341,722	687,453
Unearned revenue	(2,791,269)	(619,425)
Net cash provided by operating activities	1,663,619	1,298,857
Cash flows from investing activities:
Purchases of property and equipment	(371,630)	(1,347,601)
Sales of property and equipment	1,230	453,607
Net cash used in investing activities	(370,400)	(893,994)
Cash flows from financing activities:
Payments on finance lease obligations and loans - net	(44,474)	(445,737)
Net cash used in financing activities	(44,474)	(445,737)
Effect of exchange rate changes	(230,322)	(2,999,975)
Net increase (decrease) in cash and cash equivalents	1,018,423	(3,040,849)
Cash and cash equivalents at beginning of the period	15,533,254	23,963,797
Cash and cash equivalents at end of period	16,551,677	20,922,948
Cash paid during the period for:
Interest	315,136	94,942
Taxes	$ 111,782	$ 172,064

BASIS OF PRESENTATION AND PRINC

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION	3 Months Ended
	Sep. 30, 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, 2023. 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”) 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 September 30, 2023 (Unaudited)

ACCOUNTING POLICIES

ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 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 68,493 85,000 103,659 15,197,882 13,524,518 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 September 30, 2023 (Unaudited) The Company’s financial assets that were measured at fair value on a recurring basis as of September 30, 2023, 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 $ - $ - $ 724,875 $ 724,875 Total $ - $ - $ 724,875 $ 724,875 The Company did not have any financial assets that were measured at fair value on a recurring basis at June 30, 2023. The reconciliation from June 30, 2023 to September 30, 2023 is as follows: SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS RECONCILIATION Revenues in excess of billings - long term Fair value Total Balance at June 30, 2023 $ - $ - $ - Additions 827,853 (103,958 ) 723,895 Amortization during the period - 6,155 6,155 Effect of Translation Adjustment (4,875 ) (300 ) (5,175 ) Balance at September 30, 2023 $ 822,978 $ (98,103 ) $ 724,875 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, and was adopted by the Company on July 1, 2023. The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. In August 2023, the FASB issued ASU 2023-05, “Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. ASU 2023-05 provides decision-useful information to a joint venture’s investors and reduces diversity in practice by requiring that a joint venture apply a new basis of accounting upon formation. As a result, a newly formed joint venture, upon formation, would initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). ASU 2023-05 is effective prospectively for all joint ventures with a formation date on or after January 1, 2025, and early adoption is 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 September 30, 2023 (Unaudited)

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Sep. 30, 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 September 30, 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, most 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. 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. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited) The Company’s disaggregated revenue by category is as follows: SCHEDULE OF DISAGGREGATED REVENUE BY CATEGORY 2023 2022 For the Three Months 2023 2022 Core: License $ 1,280,449 $ 249,960 Subscription and support 6,512,243 6,016,834 Services 4,974,554 5,421,366 Total core revenue, net 12,767,246 11,688,160 Non-Core: Services 1,474,935 1,017,959 Total non-core revenue, net 1,474,935 1,017,959 Total net revenue $ 14,242,181 $ 12,706,119 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. 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. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited) 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 September 30, 2023 June 30, 2023 Revenues in excess of billings $ 13,733,160 $ 12,377,677 Unearned revenue $ 5,170,335 $ 7,932,306 The Company’s unearned revenue reconciliation is as follows: SCHEDULE OF UNEARNED REVENUE RECONCILIATION Unearned Revenue Balance at June 30, 2023 $ 7,932,306 Invoiced 3,266,924 Revenue Recognized (5,876,193 ) Adjustments (152,702 ) Balance at September 30, 2023 $ 5,170,335 During the three months ended September 30, 2023, the Company recognized revenue of $ 4,207,000 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 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 $ 29,053,000 15,757,000 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 September 30, 2023 (Unaudited)

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Sep. 30, 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 months ended September 30, 2023 and 2022, there were no

OTHER COMPREHENSIVE INCOME AND

OTHER COMPREHENSIVE INCOME AND FOREIGN CURRENCY	3 Months Ended
	Sep. 30, 2023
Other Comprehensive Income And Foreign Currency
OTHER COMPREHENSIVE INCOME AND FOREIGN CURRENCY	NOTE 5 – OTHER COMPREHENSIVE INCOME AND FOREIGN CURRENCY The following table represents the functional currencies of the Company and its subsidiaries: The Company and Subsidiaries Functional Currency NetSol Technologies, Inc. USD NTA USD Otoz USD NTE British Pound AEL British Pound VLSH British Pound VLS British Pound VLSIL Euro NetSol PK Pakistan Rupee Connect Pakistan Rupee NetSol Innovation Pakistan Rupee NetSol Thai Thai Bhat Otoz Thai Thai Bhat Australia Australian Dollar Namecet AED NetSol Beijing Chinese Yuan Tianjin Chinese Yuan 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 $ 46,411,702 45,975,156 436,546 2,918,050

MAJOR CUSTOMERS

MAJOR CUSTOMERS	3 Months Ended
	Sep. 30, 2023
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS	NOTE 6 – MAJOR CUSTOMERS During the three months ended September 30, 2023, revenues from Daimler Financial Services (“DFS”) were $ 3,687,631 25.9% 3,591,807 28.3% Accounts receivable from DFS at September 30, 2023 and June 30, 2023, were $ 999,337 4,368,881 1,229,485 1,961,750 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited)

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	3 Months Ended
	Sep. 30, 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 September 30, 2023 June 30, 2023 Prepaid Expenses $ 1,368,821 $ 1,299,334 Advance Income Tax 187,910 144,428 Employee Advances 52,955 68,488 Security Deposits 174,177 177,148 Other Receivables 145,792 92,716 Other Assets 314,835 196,400 Net Balance $ 2,244,490 $ 1,978,514

REVENUES IN EXCESS OF BILLINGS

REVENUES IN EXCESS OF BILLINGS – LONG TERM	3 Months Ended
	Sep. 30, 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 Revenues in excess of billings - long term $ 822,978 $ - Present value discount (98,103 ) - Net Balance $ 724,875 $ - Pursuant to revenue recognition for contract accounting, the Company has recorded revenues in excess of billings long-term for amounts billable after one year. During the three months ended September 30, 2023 and 2022, the Company accreted $ 6,155 9,369 7.34% 4.65% 6.25%

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Sep. 30, 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 June 30, Office Furniture and Equipment $ 2,341,918 $ 2,678,664 Computer Equipment 8,101,989 8,317,131 Assets Under Capital Leases 46,451 46,554 Building 3,490,534 3,497,913 Land 883,505 885,474 Autos 1,940,408 1,941,063 Improvements 202,241 205,289 Subtotal 17,007,046 17,572,088 Accumulated Depreciation (11,236,252 ) (11,410,902 ) Property and Equipment, Net $ 5,770,794 $ 6,161,186 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited) For the three months ended September 30, 2023 and 2022, depreciation expense totaled $ 404,745 522,183 266,942 331,229 Following is a summary of fixed assets held under finance leases as of September 30, 2023 and June 30, 2023: SUMMARY OF FIXED ASSETS HELD UNDER CAPITAL LEASES As of 2023 As of 2023 Vehicles $ 46,451 $ 46,554 Total 46,451 46,554 Less: Accumulated Depreciation - Net (19,650 ) (17,366 ) Fixed assets held under capital leases, Total $ 26,801 $ 29,188 Finance lease term and discount rate were as follows: SCHEDULE OF FINANCE LEASE TERM As of As of Weighted average remaining lease term - Finance leases 1 1.21 Weighted average discount rate - Finance leases 16.4 % 16.4 %

LEASES

LEASES	3 Months Ended
	Sep. 30, 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 September 30, 2023 (Unaudited) Supplemental balance sheet information related to leases was as follows: SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASE As of As of Assets Operating lease assets, net $ 1,359,106 $ 1,151,575 Liabilities Current Operating $ 538,363 $ 505,237 Operating, Current $ 538,363 $ 505,237 Non-current Operating 795,935 652,194 Operating, Non Current 795,935 652,194 Total Lease Liabilities $ 1,334,298 $ 1,157,431 The components of lease cost were as follows: SCHEDULE OF COMPONENTS OF LEASE COST 2023 2022 For the Three Months Ended 2023 2022 Amortization of finance lease assets $ 2,296 $ 2,896 Interest on finance lease obligation 869 1,807 Operating lease cost 107,033 118,522 Short term lease cost 41,008 66,636 Sub lease income (8,406 ) (7,812 ) Total lease cost $ 142,800 $ 182,049 Lease term and discount rate were as follows: SCHEDULE OF LEASE TERM AND DISCOUNT RATE As of As of Weighted average remaining lease term - Operating leases 2.64 3.09 Weighted average discount rate - Operating leases 4.6 % 4.0 % NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 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 Three Months 2023 2022 Operating cash flows related to operating leases $ 61,696 $ 122,121 Operating cash flows related to finance leases $ 869 $ 1,807 Financing cash flows related finance leases $ 8,078 $ 3,679 Maturities of operating lease liabilities were as follows as of September 30, 2023: SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES Amount Within year 1 $ 586,637 Within year 2 520,197 Within year 3 274,418 Within year 4 30,815 Within year 5 459 Thereafter 344 Total Lease Payments 1,412,870 Less: Imputed interest (78,572 ) Present Value of lease liabilities 1,334,298 Less: Current portion (538,363 ) Non-Current portion $ 795,935 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 months ended September 30, 2023 and 2022, the Company received lease income of $ 8,406 7,812 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited)

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 11 - INTANGIBLE ASSETS Intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS As of As of Product Licenses - Cost $ 39,395,533 $ 47,244,997 Effect of Translation Adjustment (24,867,352 ) (24,756,959 ) Accumulated Amortization (14,528,181 ) (22,360,107 ) Net Balance $ - $ 127,931 Product Licenses Product licenses include internally developed software cost. Product licenses are amortized on a straight-line basis over their respective lives. Amortization expense for the three months ended September 30, 2023 and 2022, was $ 126,041 322,820

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	3 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 12 - 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 Accounts Payable $ 1,370,668 $ 1,114,915 Accrued Liabilities 3,560,270 3,695,091 Accrued Payroll 1,101,210 982,884 Accrued Payroll Taxes 158,905 170,063 Taxes Payable 198,636 195,491 Other Payable 413,190 393,737 Total $ 6,802,879 $ 6,552,181 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited)

DEBTS

DEBTS	3 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
DEBTS	NOTE 13 – DEBTS Notes payable and finance leases consisted of the following: SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES As of September 30, 2023 Name Total Current Long-Term D&O Insurance (1) $ 14,495 $ 14,495 $ - Bank Overdraft Facility (2) - - - Loan Payable Bank - Export Refinance (3) 1,737,619 1,737,619 - Loan Payable Bank - Running Finance (4) - - - Loan Payable Bank - Export Refinance II (5) 1,320,591 1,320,591 - Loan Payable Bank - Export Refinance III (6) 2,432,667 2,432,667 - Sale and Leaseback Financing (7) 286,142 149,167 136,975 Term Finance Facility (8) 8,105 8,105 - Insurance Financing (9) 74,903 74,903 - 5,874,522 5,737,547 136,975 Subsidiary Finance Leases (10) 19,878 19,006 872 $ 5,894,400 $ 5,756,553 $ 137,847 As of June 30, 2023 Name Total Current Maturities Long-Term Maturities D&O Insurance (1) $ 89,823 $ 89,823 $ - Bank Overdraft Facility (2) - - - Loan Payable Bank - Export Refinance (3) 1,741,493 1,741,493 - Loan Payable Bank - Running Finance (4) - - - Loan Payable Bank - Export Refinance II (5) 1,323,535 1,323,535 - Loan Payable Bank - Export Refinance III (6) 2,438,089 2,438,089 - Sale and Leaseback Financing (7) 321,113 148,264 172,849 Term Finance Facility (8) 13,356 13,356 - Insurance Financing (9) - - - 5,927,409 5,754,560 172,849 Subsidiary Finance Leases (10) 28,330 24,950 3,380 $ 5,955,739 $ 5,779,510 $ 176,229 (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% (2) The Company’s subsidiary, NTE, has an overdraft facility with HSBC Bank plc whereby the bank would cover any overdrafts up to £ 300,000 365,854 9.5% 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 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited) (3) 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 1,737,619 500,000,000 1,741,493 19.0% 17.0% (4) 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. 53,000,000 186,273 Nil 24.9% 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 September 30, 2023, NetSol PK was in compliance with this covenant. (5) 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 1,320,591 380,000,000 1,323,535 19.0% 18.0% 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 September 30, 2023, NetSol PK was in compliance with these covenants. (6) 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 3,127,715 900,000,000 3,134,687 700,000,000 2,432,667 700,000,000 2,438,089 19.0% 18.0% (7) 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 September 30, 2023, NetSol PK used Rs. 82,337,274 286,142 136,975 149,167 92,194,774 321,113 172,849 148,264 9.0% 16.0% (8) In March 2019, the Company’s subsidiary, VLS, entered into a loan agreement. The loan amount was £ 69,549 84,816 1,349 1,645 8,105 13,356 6.14% (9) The Company’s subsidiary, VLS, finances Directors’ and Officers’ (“D&O”) liability insurance, and the $ 74,903 nil 9.7% 12.7% (10) The Company leases various fixed assets under finance lease arrangements expiring in various years through 2024. 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 months ended September 30, 2023 and 2022. NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited) Following are the aggregate minimum future lease payments under finance leases as of September 30, 2023: SCHEDULE OF AGGREGATE MINIMUM FUTURE LEASE PAYMENTS UNDER CAPITAL LEASES Amount Minimum Lease Payments Within year 1 $ 20,680 Within year 2 890 Total Minimum Lease Payments 21,570 Interest Expense relating to future periods (1,692 ) Present Value of minimum lease payments 19,878 Less: Current portion (19,006 ) Current portion of loans and obligations under finance leases Non-Current portion $ 872 Loans and obligations under finance leases; less current maturities Following are the aggregate future long term debt payments as of September 30, 2023 which consists of “Sale and Leaseback Financing (7)” and “Term Finance Facility (8)”. SCHEDULE OF AGGREGATE FUTURE LONG TERM DEBT PAYMENTS Amount Loan Payments Within year 1 $ 157,271 Within year 2 132,104 Within year 3 4,872 Total Loan Payments 294,247 Less: Current portion (157,272 ) Non-Current portion $ 136,975

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	3 Months Ended
	Sep. 30, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 14 - STOCKHOLDERS’ EQUITY During the three months ended September 30, 2023, the Company issued 21,963 39,750 During the three months ended September 30, 2023, the Company issued 5,000 9,050 Stock Grants The following table summarizes stock grants awarded as compensation: SUMMARY OF UNVESTED STOCK GRANTS AWARDED AS COMPENSATION # Number of Weighted Unvested, June 30, 2023 - $ - Granted 26,963 $ 1.81 Vested (26,963 ) $ 1.81 Unvested, September 30, 2023 - $ - For the three months ended September 30, 2023 and 2022, the Company recorded compensation expense of $ 48,800 39,750 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited)

OPERATING SEGMENTS

OPERATING SEGMENTS	3 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
OPERATING SEGMENTS	NOTE 15– OPERATING SEGMENTS The Company has identified three The following table presents a summary of identifiable assets as of September 30, 2023 and June 30, 2023: SUMMARY OF IDENTIFIABLE ASSETS As of As of September 30, June 30, Identifiable assets: Corporate headquarters $ 829,095 $ 878,899 North America 7,107,857 7,344,122 Europe 8,756,636 8,716,656 Asia - Pacific 39,171,445 41,439,733 Consolidated $ 55,865,033 $ 58,379,410 Identifiable assets $ 55,865,033 $ 58,379,410 The following table presents a summary of revenue streams by segment for the three months ended September 30, 2023 and 2022: SUMMARY OF REVENUE STREAMS License fees Subscription and support Services Total License fees Subscription and support Services Total 2023 2022 License fees Subscription and support Services Total License fees Subscription and support Services Total North America $ - $ 1,124,814 $ 283,801 1,408,615 $ 14,000 $ 1,065,048 $ 46,240 1,125,288 Europe 4,316 713,988 1,843,729 2,562,033 48,355 493,543 1,705,437 2,247,335 Asia-Pacific 1,276,133 4,673,441 4,321,959 10,271,533 187,605 4,458,243 4,687,648 9,333,496 Total $ 1,280,449 $ 6,512,243 $ 6,449,489 $ 14,242,181 $ 249,960 $ 6,016,834 $ 6,439,325 $ 12,706,119 Revenue $ 1,280,449 $ 6,512,243 $ 6,449,489 $ 14,242,181 $ 249,960 $ 6,016,834 $ 6,439,325 $ 12,706,119 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited) The following table presents a summary of operating information for the three months ended September 30: SUMMARY OF OPERATING INFORMATION 2023 2022 For the Three Months Ended September 30, 2023 2022 Revenues from unaffiliated customers: North America $ 1,408,615 $ 1,125,288 Europe 2,562,033 2,247,335 Asia - Pacific 10,271,533 9,333,496 Revenue from unaffiliated 14,242,181 12,706,119 Revenue from affiliated customers Asia - Pacific - - Revenue from affiliated - - Consolidated $ 14,242,181 $ 12,706,119 Revenue $ 14,242,181 $ 12,706,119 Intercompany revenue Europe $ 100,317 $ 95,725 Asia - Pacific 2,620,319 1,729,953 Eliminated $ 2,720,636 $ 1,825,678 Revenue $ 2,720,636 $ 1,825,678 Net income (loss) after taxes and before non-controlling interest: Corporate headquarters $ (303,722 ) $ 1,327,200 North America (55,947 ) (18,947 ) Europe (91,884 ) (319,755 ) Asia - Pacific 742,616 (1,426,469 ) Consolidated $ 291,063 $ (437,971 ) Net income (loss) after taxes and before non-controlling interest $ 291,063 $ (437,971 ) Depreciation and amortization: North America $ 491 $ 482 Europe 62,901 75,171 Asia - Pacific 467,394 769,350 Consolidated $ 530,786 $ 845,003 Depreciation and amortization $ 530,786 $ 845,003 Interest expense: Corporate headquarters $ 6,121 $ 2,480 Europe 4,642 3,638 Asia - Pacific 265,254 115,492 Consolidated $ 276,017 $ 121,610 Interest expense $ 276,017 $ 121,610 Income tax expense: Asia - Pacific $ 121,895 $ 193,348 Consolidated $ 121,895 $ 193,348 Income tax expense $ 121,895 $ 193,348 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited) The following table presents a summary of capital expenditures for the three months ended September 30: SUMMARY OF CAPITAL EXPENDITURES 2023 2022 For the Three Months Ended September 30, 2023 2022 Capital expenditures: North America $ - $ 1,133 Europe 333,754 - Asia - Pacific 37,876 1,346,468 Consolidated $ 371,630 $ 1,347,601 Capital expenditures $ 371,630 $ 1,347,601

NON-CONTROLLING INTEREST IN SUB

NON-CONTROLLING INTEREST IN SUBSIDIARY	3 Months Ended
	Sep. 30, 2023
Noncontrolling Interest [Abstract]
NON-CONTROLLING INTEREST IN SUBSIDIARY	NOTE 16 – 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 NetSol PK 32.38 % $ 3,594,004 NetSol-Innovation 32.38 % (285,611 ) NAMECET 32.38 % (8,825 ) NetSol Thai 0.006 % (153 ) OTOZ Thai 5.60 % (21,877 ) OTOZ 5.59 % (75,815 ) Total $ 3,201,723 SUBSIDIARY Non-Controlling Interest % Non-Controlling Interest at NetSol PK 32.38 % $ 3,314,659 NetSol-Innovation 32.38 % (223,504 ) NAMECET 32.38 % (5,384 ) NetSol Thai 0.006 % (194 ) OTOZ Thai 5.60 % (23,572 ) OTOZ 5.59 % (86,952 ) Total $ 2,975,053 In September 2022, the Company’s subsidiary, Otoz, issued 191,011 5.59% 10.94% 10.95% NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 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 For the Three Months Ended September 30, 2023 2022 Net income (loss) attributable to NetSol $ 30,890 $ (620,729 ) 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 $ 30,890 $ (500,164 )

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 17– 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 months ended September 30, 2023 and 2022, the Company recorded an income tax provision of $ 121,895 193,348

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 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 68,493 85,000 103,659 15,197,882 13,524,518 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 September 30, 2023 (Unaudited) The Company’s financial assets that were measured at fair value on a recurring basis as of September 30, 2023, 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 $ - $ - $ 724,875 $ 724,875 Total $ - $ - $ 724,875 $ 724,875 The Company did not have any financial assets that were measured at fair value on a recurring basis at June 30, 2023. The reconciliation from June 30, 2023 to September 30, 2023 is as follows: SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS RECONCILIATION Revenues in excess of billings - long term Fair value Total Balance at June 30, 2023 $ - $ - $ - Additions 827,853 (103,958 ) 723,895 Amortization during the period - 6,155 6,155 Effect of Translation Adjustment (4,875 ) (300 ) (5,175 ) Balance at September 30, 2023 $ 822,978 $ (98,103 ) $ 724,875 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, and was adopted by the Company on July 1, 2023. The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. In August 2023, the FASB issued ASU 2023-05, “Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. ASU 2023-05 provides decision-useful information to a joint venture’s investors and reduces diversity in practice by requiring that a joint venture apply a new basis of accounting upon formation. As a result, a newly formed joint venture, upon formation, would initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). ASU 2023-05 is effective prospectively for all joint ventures with a formation date on or after January 1, 2025, and early adoption is 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)	3 Months Ended
	Sep. 30, 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 September 30, 2023, 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 $ - $ - $ 724,875 $ 724,875 Total $ - $ - $ 724,875 $ 724,875
SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS RECONCILIATION	The reconciliation from June 30, 2023 to September 30, 2023 is as follows: SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS RECONCILIATION Revenues in excess of billings - long term Fair value Total Balance at June 30, 2023 $ - $ - $ - Additions 827,853 (103,958 ) 723,895 Amortization during the period - 6,155 6,155 Effect of Translation Adjustment (4,875 ) (300 ) (5,175 ) Balance at September 30, 2023 $ 822,978 $ (98,103 ) $ 724,875

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Sep. 30, 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 For the Three Months 2023 2022 Core: License $ 1,280,449 $ 249,960 Subscription and support 6,512,243 6,016,834 Services 4,974,554 5,421,366 Total core revenue, net 12,767,246 11,688,160 Non-Core: Services 1,474,935 1,017,959 Total non-core revenue, net 1,474,935 1,017,959 Total net revenue $ 14,242,181 $ 12,706,119
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 September 30, 2023 June 30, 2023 Revenues in excess of billings $ 13,733,160 $ 12,377,677 Unearned revenue $ 5,170,335 $ 7,932,306
SCHEDULE OF UNEARNED REVENUE RECONCILIATION	The Company’s unearned revenue reconciliation is as follows: SCHEDULE OF UNEARNED REVENUE RECONCILIATION Unearned Revenue Balance at June 30, 2023 $ 7,932,306 Invoiced 3,266,924 Revenue Recognized (5,876,193 ) Adjustments (152,702 ) Balance at September 30, 2023 $ 5,170,335

OTHER CURRENT ASSETS (Tables)

OTHER CURRENT ASSETS (Tables)	3 Months Ended
	Sep. 30, 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 September 30, 2023 June 30, 2023 Prepaid Expenses $ 1,368,821 $ 1,299,334 Advance Income Tax 187,910 144,428 Employee Advances 52,955 68,488 Security Deposits 174,177 177,148 Other Receivables 145,792 92,716 Other Assets 314,835 196,400 Net Balance $ 2,244,490 $ 1,978,514

REVENUES IN EXCESS OF BILLING_2

REVENUES IN EXCESS OF BILLINGS – LONG TERM (Tables)	3 Months Ended
	Sep. 30, 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 Revenues in excess of billings - long term $ 822,978 $ - Present value discount (98,103 ) - Net Balance $ 724,875 $ -

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Sep. 30, 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 June 30, Office Furniture and Equipment $ 2,341,918 $ 2,678,664 Computer Equipment 8,101,989 8,317,131 Assets Under Capital Leases 46,451 46,554 Building 3,490,534 3,497,913 Land 883,505 885,474 Autos 1,940,408 1,941,063 Improvements 202,241 205,289 Subtotal 17,007,046 17,572,088 Accumulated Depreciation (11,236,252 ) (11,410,902 ) Property and Equipment, Net $ 5,770,794 $ 6,161,186
SUMMARY OF FIXED ASSETS HELD UNDER CAPITAL LEASES	Following is a summary of fixed assets held under finance leases as of September 30, 2023 and June 30, 2023: SUMMARY OF FIXED ASSETS HELD UNDER CAPITAL LEASES As of 2023 As of 2023 Vehicles $ 46,451 $ 46,554 Total 46,451 46,554 Less: Accumulated Depreciation - Net (19,650 ) (17,366 ) Fixed assets held under capital leases, Total $ 26,801 $ 29,188
SCHEDULE OF FINANCE LEASE TERM	Finance lease term and discount rate were as follows: SCHEDULE OF FINANCE LEASE TERM As of As of Weighted average remaining lease term - Finance leases 1 1.21 Weighted average discount rate - Finance leases 16.4 % 16.4 %

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Sep. 30, 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 Assets Operating lease assets, net $ 1,359,106 $ 1,151,575 Liabilities Current Operating $ 538,363 $ 505,237 Operating, Current $ 538,363 $ 505,237 Non-current Operating 795,935 652,194 Operating, Non Current 795,935 652,194 Total Lease Liabilities $ 1,334,298 $ 1,157,431
SCHEDULE OF COMPONENTS OF LEASE COST	The components of lease cost were as follows: SCHEDULE OF COMPONENTS OF LEASE COST 2023 2022 For the Three Months Ended 2023 2022 Amortization of finance lease assets $ 2,296 $ 2,896 Interest on finance lease obligation 869 1,807 Operating lease cost 107,033 118,522 Short term lease cost 41,008 66,636 Sub lease income (8,406 ) (7,812 ) Total lease cost $ 142,800 $ 182,049
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 Weighted average remaining lease term - Operating leases 2.64 3.09 Weighted average discount rate - Operating leases 4.6 % 4.0 %
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 Three Months 2023 2022 Operating cash flows related to operating leases $ 61,696 $ 122,121 Operating cash flows related to finance leases $ 869 $ 1,807 Financing cash flows related finance leases $ 8,078 $ 3,679
SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES	Maturities of operating lease liabilities were as follows as of September 30, 2023: SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES Amount Within year 1 $ 586,637 Within year 2 520,197 Within year 3 274,418 Within year 4 30,815 Within year 5 459 Thereafter 344 Total Lease Payments 1,412,870 Less: Imputed interest (78,572 ) Present Value of lease liabilities 1,334,298 Less: Current portion (538,363 ) Non-Current portion $ 795,935

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Sep. 30, 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 Product Licenses - Cost $ 39,395,533 $ 47,244,997 Effect of Translation Adjustment (24,867,352 ) (24,756,959 ) Accumulated Amortization (14,528,181 ) (22,360,107 ) Net Balance $ - $ 127,931

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	3 Months Ended
	Sep. 30, 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 Accounts Payable $ 1,370,668 $ 1,114,915 Accrued Liabilities 3,560,270 3,695,091 Accrued Payroll 1,101,210 982,884 Accrued Payroll Taxes 158,905 170,063 Taxes Payable 198,636 195,491 Other Payable 413,190 393,737 Total $ 6,802,879 $ 6,552,181

DEBTS (Tables)

DEBTS (Tables)	3 Months Ended
	Sep. 30, 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 September 30, 2023 Name Total Current Long-Term D&O Insurance (1) $ 14,495 $ 14,495 $ - Bank Overdraft Facility (2) - - - Loan Payable Bank - Export Refinance (3) 1,737,619 1,737,619 - Loan Payable Bank - Running Finance (4) - - - Loan Payable Bank - Export Refinance II (5) 1,320,591 1,320,591 - Loan Payable Bank - Export Refinance III (6) 2,432,667 2,432,667 - Sale and Leaseback Financing (7) 286,142 149,167 136,975 Term Finance Facility (8) 8,105 8,105 - Insurance Financing (9) 74,903 74,903 - 5,874,522 5,737,547 136,975 Subsidiary Finance Leases (10) 19,878 19,006 872 $ 5,894,400 $ 5,756,553 $ 137,847 As of June 30, 2023 Name Total Current Maturities Long-Term Maturities D&O Insurance (1) $ 89,823 $ 89,823 $ - Bank Overdraft Facility (2) - - - Loan Payable Bank - Export Refinance (3) 1,741,493 1,741,493 - Loan Payable Bank - Running Finance (4) - - - Loan Payable Bank - Export Refinance II (5) 1,323,535 1,323,535 - Loan Payable Bank - Export Refinance III (6) 2,438,089 2,438,089 - Sale and Leaseback Financing (7) 321,113 148,264 172,849 Term Finance Facility (8) 13,356 13,356 - Insurance Financing (9) - - - 5,927,409 5,754,560 172,849 Subsidiary Finance Leases (10) 28,330 24,950 3,380 $ 5,955,739 $ 5,779,510 $ 176,229 (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% (2) The Company’s subsidiary, NTE, has an overdraft facility with HSBC Bank plc whereby the bank would cover any overdrafts up to £ 300,000 365,854 9.5% 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 NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2023 (Unaudited) (3) 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 1,737,619 500,000,000 1,741,493 19.0% 17.0% (4) 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. 53,000,000 186,273 Nil 24.9% 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 September 30, 2023, NetSol PK was in compliance with this covenant. (5) 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 1,320,591 380,000,000 1,323,535 19.0% 18.0% 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 September 30, 2023, NetSol PK was in compliance with these covenants. (6) 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 3,127,715 900,000,000 3,134,687 700,000,000 2,432,667 700,000,000 2,438,089 19.0% 18.0% (7) 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 September 30, 2023, NetSol PK used Rs. 82,337,274 286,142 136,975 149,167 92,194,774 321,113 172,849 148,264 9.0% 16.0% (8) In March 2019, the Company’s subsidiary, VLS, entered into a loan agreement. The loan amount was £ 69,549 84,816 1,349 1,645 8,105 13,356 6.14% (9) The Company’s subsidiary, VLS, finances Directors’ and Officers’ (“D&O”) liability insurance, and the $ 74,903 nil 9.7% 12.7% (10) The Company leases various fixed assets under finance lease arrangements expiring in various years through 2024. 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 months ended September 30, 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 September 30, 2023: SCHEDULE OF AGGREGATE MINIMUM FUTURE LEASE PAYMENTS UNDER CAPITAL LEASES Amount Minimum Lease Payments Within year 1 $ 20,680 Within year 2 890 Total Minimum Lease Payments 21,570 Interest Expense relating to future periods (1,692 ) Present Value of minimum lease payments 19,878 Less: Current portion (19,006 ) Current portion of loans and obligations under finance leases Non-Current portion $ 872 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 September 30, 2023 which consists of “Sale and Leaseback Financing (7)” and “Term Finance Facility (8)”. SCHEDULE OF AGGREGATE FUTURE LONG TERM DEBT PAYMENTS Amount Loan Payments Within year 1 $ 157,271 Within year 2 132,104 Within year 3 4,872 Total Loan Payments 294,247 Less: Current portion (157,272 ) Non-Current portion $ 136,975

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	3 Months Ended
	Sep. 30, 2023
Equity [Abstract]
SUMMARY OF UNVESTED STOCK GRANTS AWARDED AS COMPENSATION	The following table summarizes stock grants awarded as compensation: SUMMARY OF UNVESTED STOCK GRANTS AWARDED AS COMPENSATION # Number of Weighted Unvested, June 30, 2023 - $ - Granted 26,963 $ 1.81 Vested (26,963 ) $ 1.81 Unvested, September 30, 2023 - $ -

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	3 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
SUMMARY OF IDENTIFIABLE ASSETS	The following table presents a summary of identifiable assets as of September 30, 2023 and June 30, 2023: SUMMARY OF IDENTIFIABLE ASSETS As of As of September 30, June 30, Identifiable assets: Corporate headquarters $ 829,095 $ 878,899 North America 7,107,857 7,344,122 Europe 8,756,636 8,716,656 Asia - Pacific 39,171,445 41,439,733 Consolidated $ 55,865,033 $ 58,379,410 Identifiable assets $ 55,865,033 $ 58,379,410
SUMMARY OF REVENUE STREAMS	The following table presents a summary of revenue streams by segment for the three months ended September 30, 2023 and 2022: SUMMARY OF REVENUE STREAMS License fees Subscription and support Services Total License fees Subscription and support Services Total 2023 2022 License fees Subscription and support Services Total License fees Subscription and support Services Total North America $ - $ 1,124,814 $ 283,801 1,408,615 $ 14,000 $ 1,065,048 $ 46,240 1,125,288 Europe 4,316 713,988 1,843,729 2,562,033 48,355 493,543 1,705,437 2,247,335 Asia-Pacific 1,276,133 4,673,441 4,321,959 10,271,533 187,605 4,458,243 4,687,648 9,333,496 Total $ 1,280,449 $ 6,512,243 $ 6,449,489 $ 14,242,181 $ 249,960 $ 6,016,834 $ 6,439,325 $ 12,706,119 Revenue $ 1,280,449 $ 6,512,243 $ 6,449,489 $ 14,242,181 $ 249,960 $ 6,016,834 $ 6,439,325 $ 12,706,119
SUMMARY OF OPERATING INFORMATION	The following table presents a summary of operating information for the three months ended September 30: SUMMARY OF OPERATING INFORMATION 2023 2022 For the Three Months Ended September 30, 2023 2022 Revenues from unaffiliated customers: North America $ 1,408,615 $ 1,125,288 Europe 2,562,033 2,247,335 Asia - Pacific 10,271,533 9,333,496 Revenue from unaffiliated 14,242,181 12,706,119 Revenue from affiliated customers Asia - Pacific - - Revenue from affiliated - - Consolidated $ 14,242,181 $ 12,706,119 Revenue $ 14,242,181 $ 12,706,119 Intercompany revenue Europe $ 100,317 $ 95,725 Asia - Pacific 2,620,319 1,729,953 Eliminated $ 2,720,636 $ 1,825,678 Revenue $ 2,720,636 $ 1,825,678 Net income (loss) after taxes and before non-controlling interest: Corporate headquarters $ (303,722 ) $ 1,327,200 North America (55,947 ) (18,947 ) Europe (91,884 ) (319,755 ) Asia - Pacific 742,616 (1,426,469 ) Consolidated $ 291,063 $ (437,971 ) Net income (loss) after taxes and before non-controlling interest $ 291,063 $ (437,971 ) Depreciation and amortization: North America $ 491 $ 482 Europe 62,901 75,171 Asia - Pacific 467,394 769,350 Consolidated $ 530,786 $ 845,003 Depreciation and amortization $ 530,786 $ 845,003 Interest expense: Corporate headquarters $ 6,121 $ 2,480 Europe 4,642 3,638 Asia - Pacific 265,254 115,492 Consolidated $ 276,017 $ 121,610 Interest expense $ 276,017 $ 121,610 Income tax expense: Asia - Pacific $ 121,895 $ 193,348 Consolidated $ 121,895 $ 193,348 Income tax expense $ 121,895 $ 193,348
SUMMARY OF CAPITAL EXPENDITURES	The following table presents a summary of capital expenditures for the three months ended September 30: SUMMARY OF CAPITAL EXPENDITURES 2023 2022 For the Three Months Ended September 30, 2023 2022 Capital expenditures: North America $ - $ 1,133 Europe 333,754 - Asia - Pacific 37,876 1,346,468 Consolidated $ 371,630 $ 1,347,601 Capital expenditures $ 371,630 $ 1,347,601

NON-CONTROLLING INTEREST IN S_2

NON-CONTROLLING INTEREST IN SUBSIDIARY (Tables)	3 Months Ended
	Sep. 30, 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 NetSol PK 32.38 % $ 3,594,004 NetSol-Innovation 32.38 % (285,611 ) NAMECET 32.38 % (8,825 ) NetSol Thai 0.006 % (153 ) OTOZ Thai 5.60 % (21,877 ) OTOZ 5.59 % (75,815 ) Total $ 3,201,723 SUBSIDIARY Non-Controlling Interest % Non-Controlling Interest at NetSol PK 32.38 % $ 3,314,659 NetSol-Innovation 32.38 % (223,504 ) NAMECET 32.38 % (5,384 ) NetSol Thai 0.006 % (194 ) OTOZ Thai 5.60 % (23,572 ) OTOZ 5.59 % (86,952 ) Total $ 2,975,053
SCHEDULE OF CHANGE IN OWNERSHIP INTEREST	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 For the Three Months Ended September 30, 2023 2022 Net income (loss) attributable to NetSol $ 30,890 $ (620,729 ) 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 $ 30,890 $ (500,164 )

SCHEDULE OF FAIR VALUE OF FINAN

SCHEDULE OF FAIR VALUE OF FINANCIAL ASSETS MEASURED ON RECURRING BASIS (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Platform Operator, Crypto-Asset [Line Items]
Revenues in excess of billings - long term	$ 724,875
Total	724,875
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	724,875
Total	$ 724,875

SCHEDULE OF FAIR VALUE OF FIN_2

SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS RECONCILIATION (Details)	3 Months Ended
	Sep. 30, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance
Amortization during the period	723,895
Amortization during the period	6,155
Effect of Translation Adjustment	(5,175)
Ending balance	724,875
Revenues in Excess of Billings - Long Term [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance
Amortization during the period	827,853
Amortization during the period
Effect of Translation Adjustment	(4,875)
Ending balance	822,978
Fair Value Discount [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance
Amortization during the period	(103,958)
Amortization during the period	6,155
Effect of Translation Adjustment	(300)
Ending balance	$ (98,103)

ACCOUNTING POLICIES (Details Na

ACCOUNTING POLICIES (Details Narrative)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 CNY (¥)	Sep. 30, 2023 GBP (£)	Jun. 30, 2023 USD ($)
Uninsured deposits related to cash deposits	$ 15,197,882			$ 13,524,518
CHINA
Uninsured deposits related to cash deposits	68,493	¥ 500,000
UNITED KINGDOM
Uninsured deposits related to cash deposits	$ 103,659		£ 85,000

SCHEDULE OF DISAGGREGATED REVEN

SCHEDULE OF DISAGGREGATED REVENUE BY CATEGORY (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Total net revenue	$ 14,242,181	$ 12,706,119
License [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	1,280,449	249,960
Subscription and Support [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	6,512,243	6,016,834
Service [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	6,449,489	6,439,325
Core Revenue [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	12,767,246	11,688,160
Core Revenue [Member] | License [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	1,280,449	249,960
Core Revenue [Member] | Subscription and Support [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	6,512,243	6,016,834
Core Revenue [Member] | Service [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	4,974,554	5,421,366
Non Core Revenue [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	1,474,935	1,017,959
Non Core Revenue [Member] | Service [Member]
Disaggregation of Revenue [Line Items]
Total net revenue	$ 1,474,935	$ 1,017,959

SCHEDULE OF REVENUES IN EXCESS

SCHEDULE OF REVENUES IN EXCESS OF BILLINGS AND DEFERRED REVENUE (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenues in excess of billings	$ 13,733,160	$ 12,377,677
Unearned revenue	$ 5,170,335	$ 7,932,306

SCHEDULE OF UNEARNED REVENUE RE

SCHEDULE OF UNEARNED REVENUE RECONCILIATION (Details)	3 Months Ended
	Sep. 30, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Beginning balance	$ 7,932,306
Invoiced	3,266,924
Revenue Recognized	(5,876,193)
Adjustments	(152,702)
Ending balance	$ 5,170,335

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative)	3 Months Ended
	Sep. 30, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Recognized revenue	$ 4,207,000
Unsatisfied performance obligation	29,053,000
Contracted but unsatisfied performance obligations, next twelve months	$ 15,757,000

EARNINGS PER SHARE (Details Nar

EARNINGS PER SHARE (Details Narrative) - shares	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Net income (loss) per share:
Earnings per share outstanding dilutive	0	0

OTHER COMPREHENSIVE INCOME AN_2

OTHER COMPREHENSIVE INCOME AND FOREIGN CURRENCY (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Other Comprehensive Income And Foreign Currency
Accumulated other comprehensive loss	$ 46,411,702		$ 45,975,156
Net translation adjustment	$ 436,546	$ 2,918,050

MAJOR CUSTOMERS (Details Narrat

MAJOR CUSTOMERS (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Concentration Risk [Line Items]
Revenue	$ 14,242,181	$ 12,706,119
Revenues in excess of billings	13,008,285		$ 12,377,677
Daimler Financial Services [Member]
Concentration Risk [Line Items]
Revenues in excess of billings	$ 1,229,485		1,961,750
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Daimler Financial Services [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	25.90%	28.30%
Accounts Receivable [Member] | Daimler Financial Services [Member]
Concentration Risk [Line Items]
Accounts receivable, gross	$ 999,337		$ 4,368,881
Daimler Financial Services [Member]
Concentration Risk [Line Items]
Revenue	$ 3,687,631	$ 3,591,807

SCHEDULE OF OTHER CURRENT ASSET

SCHEDULE OF OTHER CURRENT ASSETS (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses	$ 1,368,821	$ 1,299,334
Advance Income Tax	187,910	144,428
Employee Advances	52,955	68,488
Security Deposits	174,177	177,148
Other Receivables	145,792	92,716
Other Assets	314,835	196,400
Net Balance	$ 2,244,490	$ 1,978,514

SCHEDULE OF REVENUE IN EXCESS O

SCHEDULE OF REVENUE IN EXCESS OF BILLING (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Contractors [Abstract]
Revenues in excess of billings - long term	$ 822,978
Present value discount	(98,103)
Net Balance	$ 724,875

REVENUES IN EXCESS OF BILLING_3

REVENUES IN EXCESS OF BILLINGS – LONG TERM (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Construction Contractor, Receivable, after Year One, Interest Rate [Line Items]
Interest income	$ 6,155	$ 9,369
Interest rate discount	7.34%
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 ($)	Sep. 30, 2023	Jun. 30, 2023
Property, Plant and Equipment [Line Items]
Subtotal	$ 17,007,046	$ 17,572,088
Accumulated Depreciation	(11,236,252)	(11,410,902)
Property and Equipment, Net	5,770,794	6,161,186
Office Furniture And Equipment [Member]
Property, Plant and Equipment [Line Items]
Subtotal	2,341,918	2,678,664
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Subtotal	8,101,989	8,317,131
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Subtotal	46,451	46,554
Building [Member]
Property, Plant and Equipment [Line Items]
Subtotal	3,490,534	3,497,913
Land [Member]
Property, Plant and Equipment [Line Items]
Subtotal	883,505	885,474
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Subtotal	1,940,408	1,941,063
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Subtotal	$ 202,241	$ 205,289

SUMMARY OF FIXED ASSETS HELD UN

SUMMARY OF FIXED ASSETS HELD UNDER CAPITAL LEASES (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Property, Plant and Equipment [Line Items]
Total	$ 46,451	$ 46,554
Less: Accumulated Depreciation - Net	(19,650)	(17,366)
Fixed assets held under capital leases, Total	26,801	29,188
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total	$ 46,451	$ 46,554

SCHEDULE OF FINANCE LEASE TERM

SCHEDULE OF FINANCE LEASE TERM (Details)	Sep. 30, 2023	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Weighted average remaining lease term - Finance leases	1 year	1 year 2 months 15 days
Weighted average discount rate - Finance leases	16.40%	16.40%

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 404,745	$ 522,183
Depreciation reflected in cost of revenues	$ 266,942	$ 331,229

SCHEDULE OF BALANCE SHEET INFOR

SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASE (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Leases
Operating lease assets, net	$ 1,359,106	$ 1,151,575
Operating, Current	538,363	505,237
Operating, Non Current	795,935	652,194
Total Lease Liabilities	$ 1,334,298	$ 1,157,431

SCHEDULE OF COMPONENTS OF LEASE

SCHEDULE OF COMPONENTS OF LEASE COST (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Leases
Amortization of finance lease assets	$ 2,296	$ 2,896
Interest on finance lease obligation	869	1,807
Operating lease cost	107,033	118,522
Short term lease cost	41,008	66,636
Sub lease income	(8,406)	(7,812)
Total lease cost	$ 142,800	$ 182,049

SCHEDULE OF LEASE TERM AND DISC

SCHEDULE OF LEASE TERM AND DISCOUNT RATE (Details)	Sep. 30, 2023	Jun. 30, 2023
Leases
Weighted average remaining lease term - Operating leases	2 years 7 months 20 days	3 years 1 month 2 days
Weighted average discount rate - Operating leases	4.60%	4%

SCHEDULE OF SUPPLEMENTAL DISCLO

SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION RELATED TO LEASES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Leases
Operating cash flows related to operating leases	$ 61,696	$ 122,121
Operating cash flows related to finance leases	869	1,807
Financing cash flows related finance leases	$ 8,078	$ 3,679

SCHEDULE OF MATURITIES OF OPERA

SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Leases
Within year 1	$ 586,637
Within year 2	520,197
Within year 3	274,418
Within year 4	30,815
Within year 5	459
Thereafter	344
Total Lease Payments	1,412,870
Less: Imputed interest	(78,572)
Present Value of lease liabilities	1,334,298	$ 1,157,431
Less: Current portion	(538,363)	(505,237)
Non-Current portion	$ 795,935	$ 652,194

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Lease Agreement [Member]
Operating lease income	$ 8,406	$ 7,812
Minimum [Member]
Finance lease term	1 year
Operating lease term	1 year
Maximum [Member]
Finance lease term	10 years
Operating lease term	10 years

SCHEDULE OF INTANGIBLE ASSETS (

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Product Licenses - Cost	$ 39,395,533	$ 47,244,997
Effect of Translation Adjustment	(24,867,352)	(24,756,959)
Accumulated Amortization	(14,528,181)	(22,360,107)
Net Balance		$ 127,931

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Product Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expenses of intangible assets	$ 126,041	$ 322,820

SCHEDULE OF ACCOUNTS PAYABLE AN

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Payables and Accruals [Abstract]
Accounts Payable	$ 1,370,668	$ 1,114,915
Accrued Liabilities	3,560,270	3,695,091
Accrued Payroll	1,101,210	982,884
Accrued Payroll Taxes	158,905	170,063
Taxes Payable	198,636	195,491
Other Payable	413,190	393,737
Total	$ 6,802,879	$ 6,552,181

SCHEDULE OF COMPONENTS OF NOTES

SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES (Details) - USD ($)		Sep. 30, 2023	Jun. 30, 2023
Debt Instrument [Line Items]
Total		$ 5,874,522	$ 5,927,409
Current Maturities		5,737,547	5,754,560
Long-Term Maturities		136,975	172,849
Subsidiary Finance Leases, Total	[1]	19,878	28,330
Subsidiary Finance Leases, Current Maturities	[1]	19,006	24,950
Subsidiary Finance Leases, Long-Term Maturities	[1]	872	3,380
Total		5,894,400	5,955,739
Current Maturities		5,756,553	5,779,510
Long-Term Maturities		137,847	176,229
D&O Insurance [Member]
Debt Instrument [Line Items]
Total	[2]	14,495	89,823
Current Maturities	[2]	14,495	89,823
Long-Term Maturities	[2]
Bank Overdraft Facility [Member]
Debt Instrument [Line Items]
Total	[3]
Current Maturities	[3]
Long-Term Maturities	[3]
Loan Payable Bank - Export Refinance [Member]
Debt Instrument [Line Items]
Total	[4]	1,737,619	1,741,493
Current Maturities	[4]	1,737,619	1,741,493
Long-Term Maturities	[4]
Loan Payable Bank - Running Finance [Member]
Debt Instrument [Line Items]
Total	[5]
Current Maturities	[5]
Long-Term Maturities	[5]
Loan Payable Bank - Export Refinance II [Member]
Debt Instrument [Line Items]
Total	[6]	1,320,591	1,323,535
Current Maturities	[6]	1,320,591	1,323,535
Long-Term Maturities	[6]
Loan Payable Bank - Export Refinance III [Member]
Debt Instrument [Line Items]
Total	[7]	2,432,667	2,438,089
Current Maturities	[7]	2,432,667	2,438,089
Long-Term Maturities	[7]
Sale and Leaseback Financing [Member]
Debt Instrument [Line Items]
Total	[8]	286,142	321,113
Current Maturities	[8]	149,167	148,264
Long-Term Maturities	[8]	136,975	172,849
Term Finance Facility [Member]
Debt Instrument [Line Items]
Total	[9]	8,105	13,356
Current Maturities	[9]	8,105	13,356
Long-Term Maturities	[9]
Insurance Financing [Member]
Debt Instrument [Line Items]
Total	[10]	74,903
Current Maturities	[10]	74,903
Long-Term Maturities	[10]
[1]The Company leases various fixed assets under finance lease arrangements expiring in various years through 2024. 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 months ended September 30, 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% 300,000 365,854 9.5% Nil 500,000,000 1,737,619 500,000,000 1,741,493 19.0% 17.0% 53,000,000 186,273 Nil 24.9% 380,000,000 1,320,591 380,000,000 1,323,535 19.0% 18.0% 900,000,000 3,127,715 900,000,000 3,134,687 700,000,000 2,432,667 700,000,000 2,438,089 19.0% 18.0% 82,337,274 286,142 136,975 149,167 92,194,774 321,113 172,849 148,264 9.0% 16.0% 69,549 84,816 1,349 1,645 8,105 13,356 6.14% 74,903 nil 9.7% 12.7%

SCHEDULE OF COMPONENTS OF NOT_2

SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES (Details) (Parenthetical)			3 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2019 GBP (£)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 INR (₨)	Sep. 30, 2023 GBP (£)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 INR (₨)	Jun. 30, 2023 GBP (£)	Mar. 31, 2019 GBP (£)
Virtual Lease Services Limited [Member] | Loan Agreement [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 8,105			$ 13,356
Debt instrument, interest rate			6.14%	6.14%	6.14%	6.14%	6.14%	6.14%
Line of credit	$ 84,816								£ 69,549
Line of credit monthly payments	$ 1,645	£ 1,349
Virtual Lease Services Limited [Member] | Insurance Financing [Member] | Directors and Officers [Member]
Line of Credit Facility [Line Items]
Line of credit, current			$ 74,903
HSBC Bank [Member] | NTE [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 365,854		£ 300,000
Debt instrument, interest rate			9.50%	9.50%	9.50%
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			$ 1,737,619	₨ 500,000,000		$ 1,741,493	₨ 500,000,000
Debt instrument, interest rate			19%	19%	19%	17%	17%	17%
Askari Bank Limited [Member] | NetSol PK [Member] | Running Finance Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 186,273	₨ 53,000,000
Debt instrument, interest rate			24.90%	24.90%	24.90%	24.90%	24.90%	24.90%
Line of credit | ₨
Samba Bank Limited [Member] | NetSol PK [Member] | Refinance Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 1,320,591	₨ 380,000,000		$ 1,323,535	₨ 380,000,000
Debt instrument, interest rate			19%	19%	19%	18%	18%	18%
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 September 30, 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			$ 3,127,715	₨ 900,000,000		$ 3,134,687	₨ 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			$ 2,432,667	₨ 700,000,000		$ 2,438,089	₨ 700,000,000
Debt instrument, interest rate			19%	19%	19%	18%	18%	18%
Habib Metro Bank Limited [Member] | NetSol PK [Member] | Sale and Leaseback Financing [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 286,142	₨ 82,337,274		$ 321,113	₨ 92,194,774
Line of credit, long term			136,975			172,849
Line of credit, current			$ 149,167			$ 148,264
Minimum [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%	9.70%	9.70%	9.70%
Minimum [Member] | Habib Metro Bank Limited [Member] | NetSol PK [Member] | Sale and Leaseback Financing [Member]
Line of Credit Facility [Line Items]
Debt instrument, interest rate			9%	9%	9%	9%	9%	9%
Maximum [Member] | Virtual Lease Services Limited [Member] | Insurance Financing [Member] | Directors and Officers [Member]
Line of Credit Facility [Line Items]
Debt instrument, interest rate			12.70%	12.70%	12.70%	12.70%	12.70%	12.70%
Maximum [Member] | Habib Metro Bank Limited [Member] | NetSol PK [Member] | Sale and Leaseback Financing [Member]
Line of Credit Facility [Line Items]
Debt instrument, interest rate			16%	16%	16%	16%	16%	16%
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%	7.90%	7.90%	7.90%

SCHEDULE OF AGGREGATE MINIMUM F

SCHEDULE OF AGGREGATE MINIMUM FUTURE LEASE PAYMENTS UNDER CAPITAL LEASES (Details)	Sep. 30, 2023 USD ($)
Debt Disclosure [Abstract]
Within year 1	$ 20,680
Within year 2	890
Total Minimum Lease Payments	21,570
Interest Expense relating to future periods	(1,692)
Present Value of minimum lease payments	19,878
Less: Current portion	$ (19,006)
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of loans and obligations under finance leases
Non-Current portion	$ 872
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)	Sep. 30, 2023 USD ($)
Debt Disclosure [Abstract]
Within year 1	$ 157,271
Within year 2	132,104
Within year 3	4,872
Total Loan Payments	294,247
Less: Current portion	(157,272)
Non-Current portion	$ 136,975

SUMMARY OF UNVESTED STOCK GRANT

SUMMARY OF UNVESTED STOCK GRANTS AWARDED AS COMPENSATION (Details)	3 Months Ended
	Sep. 30, 2023 $ / shares shares
Equity [Abstract]
Number of shares Unvested | shares
Weighted Average Grant Date Fair Value Unvested | $ / shares
Number of shares Granted | shares	26,963
Weighted Average Grant Date Fair Value Granted | $ / shares	$ 1.81
Number of shares Vested | shares	(26,963)
Weighted Average Grant Date Fair Value Vested | $ / shares	$ 1.81
Number of shares Unvested | shares
Weighted Average Grant Date Fair Value Unvested | $ / shares

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Compensation expenses	$ 48,800	$ 39,750
Employees [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Issuance of common stock shares for services	5,000
Compensation expenses	$ 9,050
Director [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Issuance of common stock shares for services	21,963
Compensation expenses	$ 39,750

SUMMARY OF IDENTIFIABLE ASSETS

SUMMARY OF IDENTIFIABLE ASSETS (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Identifiable assets	$ 55,865,033	$ 58,379,410
Corporate Headquarters [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Identifiable assets	829,095	878,899
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Identifiable assets	7,107,857	7,344,122
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Identifiable assets	8,756,636	8,716,656
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Identifiable assets	$ 39,171,445	$ 41,439,733

SUMMARY OF REVENUE STREAMS (Det

SUMMARY OF REVENUE STREAMS (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Revenue from External Customer [Line Items]
Revenue	$ 14,242,181	$ 12,706,119
North America [Member]
Revenue from External Customer [Line Items]
Revenue	1,408,615	1,125,288
Europe [Member]
Revenue from External Customer [Line Items]
Revenue	2,562,033	2,247,335
Asia Pacific [Member]
Revenue from External Customer [Line Items]
Revenue	10,271,533	9,333,496
License [Member]
Revenue from External Customer [Line Items]
Revenue	1,280,449	249,960
License [Member] | North America [Member]
Revenue from External Customer [Line Items]
Revenue		14,000
License [Member] | Europe [Member]
Revenue from External Customer [Line Items]
Revenue	4,316	48,355
License [Member] | Asia Pacific [Member]
Revenue from External Customer [Line Items]
Revenue	1,276,133	187,605
Subscription and Support [Member]
Revenue from External Customer [Line Items]
Revenue	6,512,243	6,016,834
Subscription and Support [Member] | North America [Member]
Revenue from External Customer [Line Items]
Revenue	1,124,814	1,065,048
Subscription and Support [Member] | Europe [Member]
Revenue from External Customer [Line Items]
Revenue	713,988	493,543
Subscription and Support [Member] | Asia Pacific [Member]
Revenue from External Customer [Line Items]
Revenue	4,673,441	4,458,243
Service [Member]
Revenue from External Customer [Line Items]
Revenue	6,449,489	6,439,325
Service [Member] | North America [Member]
Revenue from External Customer [Line Items]
Revenue	283,801	46,240
Service [Member] | Europe [Member]
Revenue from External Customer [Line Items]
Revenue	1,843,729	1,705,437
Service [Member] | Asia Pacific [Member]
Revenue from External Customer [Line Items]
Revenue	$ 4,321,959	$ 4,687,648

SUMMARY OF OPERATING INFORMATIO

SUMMARY OF OPERATING INFORMATION (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Revenue	$ 14,242,181	$ 12,706,119
Net income (loss) after taxes and before non-controlling interest	291,063	(437,971)
Depreciation and amortization	530,786	845,003
Interest expense	276,017	121,610
Income tax expense	121,895	193,348
North America [Member]
Segment Reporting Information [Line Items]
Revenue	1,408,615	1,125,288
Net income (loss) after taxes and before non-controlling interest	(55,947)	(18,947)
Depreciation and amortization	491	482
Europe [Member]
Segment Reporting Information [Line Items]
Revenue	2,562,033	2,247,335
Net income (loss) after taxes and before non-controlling interest	(91,884)	(319,755)
Depreciation and amortization	62,901	75,171
Interest expense	4,642	3,638
Asia Pacific [Member]
Segment Reporting Information [Line Items]
Revenue	10,271,533	9,333,496
Net income (loss) after taxes and before non-controlling interest	742,616	(1,426,469)
Depreciation and amortization	467,394	769,350
Interest expense	265,254	115,492
Income tax expense	121,895	193,348
Corporate Headquaters [Member]
Segment Reporting Information [Line Items]
Net income (loss) after taxes and before non-controlling interest	(303,722)	1,327,200
Interest expense	6,121	2,480
Unaffiliated Customers [Member]
Segment Reporting Information [Line Items]
Revenue	14,242,181	12,706,119
Unaffiliated Customers [Member] | North America [Member]
Segment Reporting Information [Line Items]
Revenue	1,408,615	1,125,288
Unaffiliated Customers [Member] | Europe [Member]
Segment Reporting Information [Line Items]
Revenue	2,562,033	2,247,335
Unaffiliated Customers [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Revenue	10,271,533	9,333,496
Affiliated Customers [Member]
Segment Reporting Information [Line Items]
Revenue
Affiliated Customers [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Revenue
Intercompany Revenue [Member]
Segment Reporting Information [Line Items]
Revenue	2,720,636	1,825,678
Intercompany Revenue [Member] | Europe [Member]
Segment Reporting Information [Line Items]
Revenue	100,317	95,725
Intercompany Revenue [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Revenue	$ 2,620,319	$ 1,729,953

SUMMARY OF CAPITAL EXPENDITURES

SUMMARY OF CAPITAL EXPENDITURES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Capital expenditures	$ 371,630	$ 1,347,601
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Capital expenditures		1,133
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Capital expenditures	333,754
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Capital expenditures	$ 37,876	$ 1,346,468

OPERATING SEGMENTS (Details Nar

OPERATING SEGMENTS (Details Narrative)	3 Months Ended
	Sep. 30, 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 ($)	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-Controlling Interest	$ 3,201,723	$ 2,975,053
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	$ 3,594,004	$ 3,314,659
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	$ (285,611)	$ (223,504)
NAMECET [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	$ (8,825)	$ (5,384)
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	$ (153)	$ (194)
OTOZ Thai [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-Controlling Interest, Percentage	5.60%	5.60%	10.95%
Non-Controlling Interest	$ (21,877)	$ (23,572)
OTOZ [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Non-Controlling Interest, Percentage	5.59%	5.59%
Non-Controlling Interest	$ (75,815)	$ (86,952)

SCHEDULE OF CHANGE IN OWNERSHIP

SCHEDULE OF CHANGE IN OWNERSHIP INTEREST (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Net income (loss) attributable to NetSol	$ 30,890	$ (620,729)
Net transfer (to) from non-controlling interest	(260,173)	(182,758)
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	30,890	(620,729)
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	$ 30,890	$ (500,164)

SCHEDULE OF CHANGE IN OWNERSH_2

SCHEDULE OF CHANGE IN OWNERSHIP INTEREST (Details) (Parenthetical) - shares	1 Months Ended	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
OTOZ [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Number of shares issued	191,011	191,011

NON-CONTROLLING INTEREST IN S_3

NON-CONTROLLING INTEREST IN SUBSIDIARY (Details Narrative) - shares	1 Months Ended	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2023	Jun. 30, 2023
OTOZ [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Number of common shares issued	191,011	191,011
Non-controlling interest, percentage			5.59%	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%	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%	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%	10.95%	5.60%	5.60%

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax provision	$ 121,895	$ 193,348