Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 56

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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-7.6% 
     982,815 
  
    Non-controlling interest 
     39,164  
     0.3% 
     (574,499)
  
    Net income attributable to NetSol 
    $(1,147,042) 
     -7.4% 
    $408,316 

    Net income per share: 

    Net income per common share 

    Basic 
    $(0.10) 
        
    $0.04 
  
    Diluted 
    $(0.10) 
        
    $0.04 

    Weighted average number of shares outstanding 

    Basic 
     11,484,298  
        
     11,372,819 
  
    Diluted 
     11,496,038  
        
     11,372,819 

Page 39

A
significant portion of our business is conducted in currencies other than the U.S. dollar.  We operate in several geographical
regions as described in Note 15 “Operating Segments” within the Notes to the Condensed Consolidated Financial Statements. Weakening
of the value of the U.S. dollar compared to foreign currency exchange rates generally has the effect of increasing our revenues but also
increasing our expenses denominated in currencies other than the U.S. dollar. Similarly, strengthening of the U.S. dollar compared to
foreign currency exchange rates generally has the effect of reducing our revenues but also reducing our expenses denominated in currencies
other than the U.S. dollar. We plan our business accordingly by deploying additional resources to areas of expansion, while continuing
to monitor our overall expenditures given the economic uncertainties of our target markets. In order to provide a framework for
assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the changes
in results from one period to another period using constant currency. In order to calculate our constant currency results, we apply the
current period results to the prior period foreign currency exchange rates. In the table below, we present the change based on actual
results in reported currency and in constant currency.

    Favorable  
    Favorable  
    Total 

    (Unfavorable)  
    (Unfavorable)  
    Favorable 

    For the Three Months  
    Change in  
    Change due to  
    (Unfavorable