Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1663

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 9
Chunk 1663
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 Inc. (“NTI”), entered into a share purchase agreement with
NTI and the remaining minority shareholders to acquire all issued and outstanding shares of OTOZ®. In March 2025, NTA
filed the merger documents with the respective state agencies with an effective date of April 1, 2025.

The
transaction occurred between entities under common control. Accordingly, all assets and liabilities of OTOZ® were transferred
to NTA at their carrying amounts, and no gain or loss was recognized as a result of the transaction. This merger did not result in any
change to the consolidated accounting for the assets and liabilities transferred, as both entities were controlled by NTI before and
after the transaction. The transaction was accounted for in accordance with ASC 805-50, Business Combinations – Related Parties
and had no material impact on the consolidated financial statements except for the change in legal entity structure. Details of the purchase
price and accounting treatment for the noncontrolling interest are provided in Note 19 – Non-Controlling Interest in Subsidiaries.

NOTE
19 – NON-CONTROLLING INTEREST IN SUBSIDIARIES

The
Company had non-controlling interests in several of its subsidiaries. The balance of non-controlling interest was as follows:

 SCHEDULE OF BALANCE OF NON-CONTROLLING INTEREST

    SUBSIDIARY 
    Non-Controlling
    Interest %  
    Non-Controlling
    Interest at June 30, 2025 

    NetSol
    PK 
     30.24% 
    $4,496,723 
  
    NetSol
    Innovation 
     30.24% 
     (637,529)
  
    NAMECET 
     30.24% 
     567,819 
  
    NIAI 
     30.24% 
     (1,471)
  
    NetSol
    Thai 
     0.006% 
     (184)
  
    OTOZ
    Thai 
     0.01% 
     7 
  
    OTOZ 
     0.00% 
     - 
  
    Total 
        
    $4,425,365 

    SUBSIDIARY 
    Non-Controlling
    Interest %  
    Non-Controlling
    Interest at June 30, 2024 

    NetSol
    PK