Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 175

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 175
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 of the contracts with
NetSol PK are either in U.S. dollars or Euros; therefore, the currency fluctuations will lead to foreign currency exchange gains or
losses depending on the value of the PKR compared to the U.S. dollar and the Euro. During the nine months ended March 31, 2025, we
recognized a gain of $165,775 in foreign currency exchange transactions compared to a loss of $1,112,757 for the nine months ended
March 31, 2024. During the nine months ended March 31, 2025, the value of the U.S. dollar increased 0.5% and the Euro increased
1.5%, compared to the PKR. During the nine months ended March 31, 2024, the value of the U.S. dollar and the Euro decreased 3.2% and
4.0%, respectively, compared to the PKR. During the nine months ended March 31, 2025, interest income was $1,593,594 compared to
$1,259,464 for the nine months ended March 31, 2024, for an increase of $334,130 and on constant currency basis an increase of
$291,791. The increase in interest income was driven by a higher balance of interest-bearing funds during the period.

Non-controlling
Interest

For
the nine months ended March 31, 2025, the net income attributable to non-controlling interest was $518,212, compared to $822,993 for
the nine months ended March 31, 2024. The decrease in non-controlling interest is primarily due to the decrease in net income of NetSol
PK.

Net
income (loss) attributable to NetSol

The
net income was $347,721 for the nine months ended March 31, 2025 compared to $766,755 for the nine months ended March 31, 2024. This
is a decrease in net income of $419,034 with a decrease of $277,415 on a constant currency basis, compared to the prior year. Net income
for basic and diluted shares was $0.03 and $0.07 for the nine months ended March 31, 2025 and 2024, respectively.

Page 47

Non-GAAP
Financial Measures

Regulation
S-K Item 10(e), “Use of Non-GAAP Financial Measures in Commission Filings,” defines and pres