Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 125

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 125
---
 economy or one or more sectors of the global economy.

    ●
    The
    imposition of tariffs on China and threatened tariffs on other US trading partners may affect the price of consumer goods including
    vehicles amongst others, negatively affecting the profitability of many of our customers.

    ●
    
    Political,
    monetary, and economic challenges and a higher inflation rate than other regional countries impacting Pakistan exports.

    ●
    
    Inflation
    and higher interest rates globally have greatly increased the cost of doing business, including salaries and benefits worldwide,
    affecting profitability.

    ●
    War
    and hostility between Russia and Ukraine continue to foster global economic uncertainty.

    ●
    The
    geo-political environment in South Asia will continue to influence Pakistan’s economic prospects. Pakistan’s political
    uncertainty has caused higher inflation with constant pressure on its currency being devalued against the US Dollar. According to
    a report issued by the World Bank, while marginal economic growth is expected in Pakistan, implementing an ambitious and credibly
    communicated economic reform plan is critical for a robust economic recovery. There is no guarantee that such reforms will be implemented.
    See Press Release, dated April 2, 2024, World Bank.

    ●
    
    The
    US and EU have placed tariffs on a range of high-tech products from China including the US placing 100% tariffs on EV vehicles and
    25% tariffs on EV batteries imported from China. (Center for Strategic and International Studies June 28, 2024). The US imposed additional
    tariffs on China in February 2025 with retaliatory tariffs from China on US goods.

Page 39

CHANGES
IN FINANCIAL CONDITION

Quarter
Ended March 31, 2025 Compared to the Quarter Ended March 31, 2024

The
following table sets forth the items in our unaudited condensed consolidated statement of operations for the three months ended March
31, 2025 and 2024 as a percentage of revenues.

    For
    the Three Months 

    Ended
    March 31, 

    2025  
    %  
    2024  
    % 
  
    Net
    Revenues: 

    License
    fees 
    $1,198  
     0.0% 
    $558,340  
     3.6%
  
    Subscription
    and support 
     7,888,360