Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1223

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 6
Chunk 1223
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11,190,703 
  
    Other 
     200,323  
     152,814 
  
    Net
    deferred tax assets 
     11,163,818  
     11,343,517 
  
    Valuation
    allowance for deferred tax assets 
     (11,163,818) 
     (11,343,517)
  
    Net
    deferred tax assets 
    $-  
    $- 

The
Company has established a full valuation allowance as management believes it is more likely than not that these assets will not be realized
in the future. The valuation allowance decreased by $179,699 for the year ended June 30, 2025.

At
June 30, 2025, federal and state net operating loss carry forwards in the United States of America were $29,570,036 and $8,736,297, respectively.
Federal net operating loss carry forwards begin to expire in 2028, while state net operating loss carry forwards are expiring each year.
Due to both historical and recent changes in the capitalization structure of the Company, the utilization of net operating losses may
be limited pursuant to section 382 of the Internal Revenue Code. Net operating losses related to foreign entities were $16,546,754 at
June 30, 2025.

    F-31

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

As
of June 30, 2025, the Company does not have any unrecognized tax benefits related to various federal and state income tax matters. The
Company will recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense.

The
Company is subject to U.S. federal income tax, as well as various state and foreign jurisdictions. The Company is currently open to audit
under the statute of limitations by the federal and state jurisdictions for the years ending June 30, 2022 through 2024. The Company
does not anticipate any material amount of unrecognized tax benefits within the next 12 months.

The
cumulative amount of undistributed earnings of foreign subsidiaries that the Company intends to permanently invest and upon which no
deferred US income taxes have been provided is $29,879,503 as of June 30, 2025. The additional US income tax on unremitted foreign earnings,
if repatriated, would be offset in