Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 2313

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 14
Chunk 2313
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 net operating losses may
be limited pursuant to section 382 of the Internal Revenue Code. Net operating losses related to foreign entities were $16,546,754 at
June 30, 2025.

    F-31

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

As
of June 30, 2025, the Company does not have any unrecognized tax benefits related to various federal and state income tax matters. The
Company will recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense.

The
Company is subject to U.S. federal income tax, as well as various state and foreign jurisdictions. The Company is currently open to audit
under the statute of limitations by the federal and state jurisdictions for the years ending June 30, 2022 through 2024. The Company
does not anticipate any material amount of unrecognized tax benefits within the next 12 months.

The
cumulative amount of undistributed earnings of foreign subsidiaries that the Company intends to permanently invest and upon which no
deferred US income taxes have been provided is $29,879,503 as of June 30, 2025. The additional US income tax on unremitted foreign earnings,
if repatriated, would be offset in part by foreign tax credits. The extent of this offset would depend on many factors, including the
method of distribution, and specific earnings distributed. The Company determined that it is not practicable to determine unrecognized
deferred tax liability associated with the unremitted earnings attributable to the foreign subsidiaries.

NOTE
14 - STOCKHOLDERS’ EQUITY

During
the years ended June 30, 2025 and 2024, the Company issued 58,335
and 70,035
shares of common stock, respectively, to the independent Board
of Directors as part of their board compensation. The grant date fair value of the shares was $159,000
for each period, and was recorded as compensation expense in the accompanying
consolidated financial statements.

During
the year ended June 30, 2025, the Company issued 59,528 shares of common stock to the CEO for his bonus earned in fiscal year 2024. The
fair market value of the shares was $151,201.

During
the year ended June 30, 2025, the Company issued 2,680
shares of common stock to a