Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 237

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 237
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Pakistan

The
political and economic environment in Pakistan may negatively affect our business.

Despite
a recent general election, the government remains unstable. The political unsteadiness delays governmental functions. If such unsteadiness
continues in the long term, it could result in difficulty in necessary interactions with the government as it relates to government contracts
and personnel access to necessary government functions. While there is no guarantee, we anticipate that the new government policies may
lead to macroeconomic stability.

While
the devaluation of the Pakistan Rupee in comparison to the US Dollar has stabilized, the higher-than-average inflation rate in Pakistan
may continue to negatively impact our largest subsidiary and accordingly the Company’s financials as a whole.

General
Economic Conditions

General
economic conditions in our geographic markets; inflation, geopolitical tensions, including trade wars, tariffs and/or sanctions in geographic
areas; and global conflicts or disasters that impact the global economy or one or more sectors of the global economy have negative impacts
on our ability to acquire new business to and deliver on new business when contracted.

Inflation
and higher interest rates globally have greatly increased the cost of doing business, including salaries and benefits worldwide, affecting
our profitability. If inflation does not stabilize, our profitability can be impacted.

ITEM
1B – UNRESOLVED STAFF COMMENTS

None

9

ITEM
1C – CYBERSECURITY

Cybersecurity
Risk Management and Strategy

We
face various cyber risks, including, but not limited to, risks related to unauthorized access, misuse, customer data theft, computer
viruses, system disruptions, ransomware, malicious software and other intrusions. We utilize a multilayered, proactive approach to identify,
evaluate, mitigate and prevent potential cyber and information security threats through our cybersecurity risk management program 24/7.
Our cybersecurity risk management program is designed to identify, assess, prioritize and mitigate risks across the organization to enhance
our resilience and support the achievement of our strategic objectives. This integrated approach helps ensure that cyber risks are not
viewed in isolation, but are assessed, prioritized and managed in alignment with the Company’s operational, financial and strategic
risks, assisting the Company in more effectively managing interdependencies among risks and enhancing risk mitigation strategies.

We
devote resources to protecting the security of our computer systems, software, networks and other technology assets. Our efforts are
designed to adapt to the evolution of information security risks and appropriate best practices and include physical, administrative
and technical safeguards. Our