Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 112

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 112
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 information posted on our investor relations website by signing up for e-mail alerts. Further corporate governance information,
including our committee charters and code of conduct, is also available on our investor relations website at https://netsoltech.com/about-us/csr.
The content of our websites is not intended to be incorporated by reference into this Annual Report on Form 10-K or in any other report
or document we file with the SEC and any references to our websites are intended to be inactive textual references only.

8

ITEM
1A - RISK FACTORS

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