Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 48

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 in 2024
                                            and is projected to reach USD 451.71 billion by 2030, representing a compound annual growth
                                            rate (CAGR) of 7.4% from 2025 through 2030 (Grandview Research).

Negative
trends:

●The
                                            conflict in Gaza has disrupted the entire Middle East region since October 7, 2023. The conflict
                                            has expanded to neighboring nations such as Syria, Lebanon, and Iran. The unrest and turmoil
                                            in the region are viewed unfavorably by the regional business community. While recent ceasefire
                                            efforts may signal a positive change to the volatility in the region, there is no guarantee
                                            that the ceasefire will hold or that any outcome of the conflict will positively affect the
                                            region.

●General
                                            economic conditions in our geographic markets, inflation, economic uncertainty, and increased
                                            operational costs are pressuring margins and leading companies to prioritize critical investment
                                            and control spending.

●SaaS
                                            cybersecurity faces unprecedented challenges as companies increasingly migrate critical functions
                                            to cloud platforms. Proliferation of AI tools within these platforms has created additional
                                            attack vectors that require specialized security approaches beyond legacy protections (JOSYS.COM).

●The
                                            imposition of tariffs on China and on other US trading partners may affect the price of consumer
                                            goods, including vehicles, amongst others, negatively affecting the profitability of many
                                            of our customers.

●After
                                            the phase-out of the U.S. federal tax credits for EVs, sales have declined and the outlook
                                            for recovery in EV demand is poor in the near future (marklines.com).

Page 33

CHANGES
IN FINANCIAL CONDITION

Quarter
Ended September 30, 2025 Compared to the Quarter Ended September 30, 2024

The
following table sets forth the items in our unaudited condensed consolidated statement of operations for the three months ended September
30, 2025 and 2024 as a percentage of revenues.

    For the Three Months Ended September 30, 

    2025  
    %  
    2024  
    % 
  
    Net Revenues: 

    License fees 
    $72,225  
     0.5% 
    $1,229  
     0.0%
  
    Subscription and support 
     8,960,555  
     59.7% 
     8,192