Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 820

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 3
Chunk 820
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 referred to as the “Company”)

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.

NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles
of Consolidation

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 Institute of Artificial Intelligence (Private) Limited (“NIAI”)

NETSOL
Ascent Middle East Computer Equipment Trading LLC (“Namecet”)

NetSol
Technologies Thailand Limited (“NetSol Thai”)

OTOZ,
Inc. (“OTOZ®”)

OTOZ
(Thailand) Limited (“OTOZ®  Thai”)

The
Company consolidates any variable interest entities of which it is the primary beneficiary. Equity investments through which the Company
exercises significant influence over but does not control the investee and is not the primary beneficiary of the investee’s activities
are accounted for using the equity method. Investments through which the Company is not able to exercise significant influence over the
investee, and which do not have readily determinable fair values are accounted for under the cost method. All material inter-company
accounts have been eliminated in the consolidation.

    F-10

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

Basis
of Presentation

The
accompanying consolidated financial statements are prepared in accordance