Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1939

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 9C
Chunk 1939
---

     4.1%
  
    Provision
    for income taxes 
    $1,476,338  
     24.4% 
    $1,145,518  
     35.5%

Deferred
income tax assets and liabilities as of June 30, 2025 and 2024 consist of tax effects of temporary differences related to the following:

 SCHEDULE OF DEFERRED INCOME TAX ASSETS AND LIABILITIES

    2025  
    2024 

    Years
    Ended June 30, 

    2025  
    2024 
  
    Net
    operating loss carry forwards 
    $10,963,495  
    $11,190,703 
  
    Other 
     200,323  
     152,814 
  
    Net
    deferred tax assets 
     11,163,818  
     11,343,517 
  
    Valuation
    allowance for deferred tax assets 
     (11,163,818) 
     (11,343,517)
  
    Net
    deferred tax assets 
    $-  
    $- 

The
Company has established a full valuation allowance as management believes it is more likely than not that these assets will not be realized
in the future. The valuation allowance decreased by $179,699 for the year ended June 30, 2025.

At
June 30, 2025, federal and state net operating loss carry forwards in the United States of America were $29,570,036 and $8,736,297, respectively.
Federal net operating loss carry forwards begin to expire in 2028, while state net operating loss carry forwards are expiring each year.
Due to both historical and recent changes in the capitalization structure of the Company, the utilization of net operating losses may
be limited pursuant to section 382 of the Internal Revenue Code. Net operating losses related to foreign entities were $16,546,754 at
June 30, 2025.

    F-31

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

As
of June 30, 2025, the Company does not have any unrecognized tax benefits related to various federal and state income tax matters. The
Company will recognize accrued interest and penalties related to unrecognized tax benefits in