Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 140

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 140
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 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 to hedge this exposure.

ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 

The
Consolidated Financial Statements that constitute Item 8 are included at the end of this report on page F-1.

ITEM
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

NETSOL’s
financial statements for the fiscal years ended June 30, 2025, and June 30, 2024, did not contain an adverse opinion or disclaimer of
opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles.

In
connection with the audit of NETSOL’s financial statements for the fiscal year ended June 30, 2025, and 2024, there were no disagreements,
disputes, or differences of opinion with Fortune CPA. (“Fortune”) on any matters of accounting principles or practices, financial
statement disclosure, or auditing scope and procedures, which, if not resolved to the satisfaction of Fortune would have caused Fortune
to make reference to the matter in their report.

ITEM
9A. CONTROLS AND PROCEDURES

Evaluation
of Disclosure Controls and Procedures 

Our
management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure
controls and procedures pursuant to Rule 13a-15 under the Exchange Act, as of the end of the period covered by this Annual Report on
Form 10-K. Based upon that evaluation, the Chief Financial Officer and Chief Executive Officer concluded that our disclosure controls
and procedures were effective.