CONTRACT ASSETS – NON-CURRENT

3 Months Ended

Sep. 30, 2026

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

NOTE 9 – CONTRACT ASSETS – NON-CURRENT

The Company records non-current contract assets at present value using a discounted cash flow method based on the expected timing of future cash flows. The discount rates used reflect the applicable borrowing rates at the time the related contract assets are initially recognized. The Company used discount rates ranging from 4.5% to 6.6% for contract assets initially recognized during the period ended September 30, 2026 and June 30, 2026. The resulting discount is accreted over the period until the expected billing date, with the accretion recognized as interest income. During the three months ended September 30, 2026 and 2025, the Company recognized $28,875 and $24,814, respectively, of interest income related to the accretion of the discount.

The reconciliation is as follows:

	Contract assets, net of allowance for credit losses			Fair value discount			Contract assets - non-current, net
Balance at June 30, 2026	$	2,840,237		$	(373,219	)	$	2,467,018
Accretion of discount		-			28,875			28,875
Effect of translation adjustment		(13,791	)		1,097			(12,694	)
Balance at September 30, 2026	$	2,826,446		$	(343,247	)	$	2,483,199

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2026

(Unaudited)