Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 141

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 141
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 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 share – Adjusted EBITDA allocated to common stock divided by the weighted average shares outstanding
    and diluted shares outstanding.

We
use non-GAAP measures internally to evaluate the business and believe that presenting non-GAAP measures provides useful information to
investors regarding the underlying business trends and performance of our ongoing operations as well as useful metrics for monitoring
our performance and evaluating it against industry peers. The non-GAAP financial measures presented should be used in addition to, and
in conjunction with, results presented in accordance with GAAP, and should not be relied upon to the exclusion of GAAP financial measures.
Management strongly encourages investors to review our consolidated financial statements in their entirety and not to rely on any single
financial measure in evaluating the Company