Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1264

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7
Chunk 1264
---
  
     - 
  
    Short Term Loan 
     -  
     -  
     -  
     -  
     - 
  
    Subsidiary Finance Leases 
     101,505  
     13,855  
     87,650  
     -  
     - 

     - 

     - 
  
    Operating Lease Obligations 
     766,616  
     433,242  
     332,938  
     436  
     - 

     - 
  
    Total 
    $9,141,285  
    $8,673,303  
    $467,546  
    $436  
    $- 

Off-Balance
Sheet Arrangements

We
do not maintain any off-balance sheet arrangements, transactions, obligations or other relationships with unconsolidated entities that
would be expected to have a material current or future effect upon our financial condition or results of operations.

26

 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We
are exposed to financial market risks, including changes in currency exchange rates and interest rates.

Foreign
Currency Exchange Risk 

Economic
Exposure 

We
transact business in various foreign currencies and have significant international revenues, as well as costs denominated in foreign
currencies. This exposes us to the risk of fluctuations in foreign currency exchange rates. Since the majority of the Company’s
operations are based in the Asia Pacific region where the Pakistan Rupee is continuously losing its value against the US Dollar and we
don’t have any imports; therefore, we believe it is counter-productive to hedge this exposure. The devaluation of the Pakistan
Rupee results in a foreign exchange gain to the Company.

Transaction
Exposure

Our
exposure to foreign currency transaction gains and losses is the result of certain net receivables due from our foreign subsidiaries
and customers being denominated in currencies other than the functional currency of the subsidiary, primarily the Euro, Yuan, Baht and
the Pakistan Rupee. Our foreign subsidiaries conduct their businesses in local currency. Since the majority of the Company’s operations
are based in the Asia Pacific region where the Pakistan Rupee is continuously losing its value against the US Dollar and we don’t
have any imports; therefore, we believe it is counter-productive