Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 77

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 77
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 from operations of 5.2% for the three months ended September
30, 2024.

Other
Income and Expense

Other
expense was $162,884 for the three months ended September 30, 2025 compared to other income of $1,207,684 for the three months ended
September 30, 2024. This represents a decrease in other income of $1,370,568 with a decrease of $1,371,569 on a constant currency basis.
The decrease is primarily due to the foreign currency exchange transactions. The majority 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 three months ended September 30, 2025, we recognized a loss of
$286,917 in foreign currency exchange transactions compared to a gain of $542,545 for the three months ended September 30, 2024. During
the three months ended September 30, 2025, the value of the U.S. dollar decreased 0.6% and the Euro decreased 0.7%, compared to the PKR.
During the three months ended September 30, 2024, the value of the U.S. dollar decreased 0.2% and the Euro increased 3.9%, compared to
the PKR.

Non-controlling
Interest

For
the three months ended September 30, 2025, the net income attributable to non-controlling interest was $139,923, compared to $146,914
for the three months ended September 30, 2024.

Net
income (loss) attributable to NetSol

The
net loss was $2,357,288 for the three months ended September 30, 2025 compared to net income of $70,795 for the three months ended September
30, 2024. This is a decrease of $2,428,083 with a decrease of $2,509,233 on a constant currency basis, compared to the prior year. For
the three months ended September 30, 2025, net loss per share was $0.20 for basic and diluted shares compared to net income per share
of $0.006 for basic and diluted shares for the three months ended September 30, 2024.

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