Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 39

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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, employees of NetSol PK, a majority-owned subsidiary of the Company, exercised stock options to
purchase an aggregate of 278,455 shares of the subsidiary’s common stock for total proceeds of $76,567. Of this amount, $64,147
was received during the quarter ended September 30, 2025, and $12,420 was received during the fiscal year ended June 30, 2025. Due to
this exercise, the non-controlling interest in NetSol PK, NetSol Innovation, NAMECET and NIAI, increased from 30.24% at June 30, 2025
to 30.47% at September 30, 2025. The carrying amount of the non-controlling interest was increased by $115,283, and the difference of
$38,716 was recognized as a decrease in additional paid-in capital in the Company’s consolidated equity.

The
following schedule discloses the effect on the Company’s equity due to the changes in the Company’s ownership interest.

 SCHEDULE OF CHANGE IN OWNERSHIP INTEREST

    2025  
    2024 

    For the Three Months Ended September 30, 

    2025  
    2024 

    Net income (loss) attributable to NetSol 
    $(2,357,288) 
    $70,795 
  
    Transfer to (from) non-controlling interest 

    Decrease in paid-in capital for purchase of 157,895 shares of OTOZ Inc common stock 
        
     (143,014)
  
    Decrease in paid-in capital for option exercise of 278,455 shares of common
    stock of NetSol PK by emplyees 
     (38,716) 

    Net transfer to (from) non-controlling interest 
     (38,716) 
     (143,014)
  
    Change from net income (loss) attributable to NetSol and
    transfer (to) from non-controlling interest 
    $(2,396,004) 
    $(72,219)

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