Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1524

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 1524
---
 income taxes in the statements of operations.

Foreign
Currency Translation

The
Company transacts business in various foreign currencies. The following table represents the functional currencies of the Company and
its subsidiaries:

SCHEDULE
OF FOREIGN CURRENCY TRANSLATION

    The
    Company and Subsidiaries
     
    Functional
    Currency

    NetSol
    Technologies, Inc.
     
    USD
  
    NTA
     
    USD
  
    Otoz 
     
    USD
  
    NTE
     
    British
    Pound
  
    AEL
     
    British
    Pound
  
    VLSH
     
    British
    Pound
  
    VLS
     
    British
    Pound
  
    VLSIL
     
    Euro
  
    NetSol
    PK
     
    Pakistan
    Rupee
  
    Connect
     
    Pakistan
    Rupee
  
    NetSol
    Innovation
     
    Pakistan
    Rupee
  
    NIAI
     
    Pakistan
    Rupee
  
    NetSol
    Thai
     
    Thai
    Bhat
  
    Otoz
    Thai  
     
    Thai
    Bhat
  
    Australia
     
    Australian
    Dollar
  
    Namecet
     
    AED
  
    NetSol
    Beijing
     
    Chinese
    Yuan
  
    Tianjin
     
    Chinese
    Yuan

The
effects of foreign currency translation adjustments are recorded to other comprehensive income.

    F-15

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

Statement
of Cash Flows

The
Company’s cash flows from operations are calculated based upon the local currencies. As a result, amounts related to assets and
liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated
balance sheet.

Segment
Reporting

The
Company defines operating segments as components about which separate financial information is available that is evaluated regularly
by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company allocates its resources
and assesses the performance of its sales activities based on the geographic locations of its subsidiaries.

Recent
Accounting Standards Adopted by the Company:

In
November 2023, the FASB issued Accounting Standards Update (“ASU”) No.