Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 73

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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.S. dollar increased 0.5% and the Euro increased
1.5%, compared to the PKR. During the nine months ended March 31, 2024, the value of the U.S. dollar and the Euro decreased 3.2% and
4.0%, respectively, compared to the PKR. During the nine months ended March 31, 2025, interest income was $1,593,594 compared to
$1,259,464 for the nine months ended March 31, 2024, for an increase of $334,130 and on constant currency basis an increase of
$291,791. The increase in interest income was driven by a higher balance of interest-bearing funds during the period.

Non-controlling
Interest

For
the nine months ended March 31, 2025, the net income attributable to non-controlling interest was $518,212, compared to $822,993 for
the nine months ended March 31, 2024. The decrease in non-controlling interest is primarily due to the decrease in net income of NetSol
PK.

Net
income (loss) attributable to NetSol

The
net income was $347,721 for the nine months ended March 31, 2025 compared to $766,755 for the nine months ended March 31, 2024. This
is a decrease in net income of $419,034 with a decrease of $277,415 on a constant currency basis, compared to the prior year. Net income
for basic and diluted shares was $0.03 and $0.07 for the nine months ended March 31, 2025 and 2024, respectively.

Page 47

Non-GAAP
Financial Measures

Regulation
S-K Item 10(e), “Use of Non-GAAP Financial Measures in Commission Filings,” defines and prescribes the conditions for use
of non-GAAP financial information. Our measures of adjusted EBITDA and adjusted EBITDA per basic and diluted share meet the definition
of a non-GAAP financial measure.

We
define the non-GAAP measures as follows:

    ●
    
    EBITDA
    is GAAP net income or loss before net interest expense, income tax expense, depreciation and amortization.

    ●
    
    Non-GAAP
    adjusted EBITDA is EBITDA plus stock-based compensation expense.

    ●
    
    Adjusted
    EBITDA per basic and diluted