Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1257

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7
Chunk 1257
---

the Euro. During the year ended June 30, 2025, the value of the U.S. dollar and the Euro increased 2.1% and 11.9%, respectively, compared
to the PKR. During the year ended June 30, 2024, the value of the U.S. dollar and the Euro decreased 3.1% and 4.6%, respectively, compared
to the PKR.

Non-controlling
Interest

For
the year ended June 30, 2025, and 2024, the net income attributable to non-controlling interest was $1,647,686 and $1,394,056, respectively.
The increase in non-controlling interest is primarily due to the increase in net income of NetSol PK.

Net
Income (Loss) Attributable to NetSol

Net
income was $2,923,233 for the year ended June 30, 2025, compared to $683,873 for the year ended June 30, 2024. This is an increase in
income of $2,239,360 with an increase of $1,678,200 on a constant currency basis, compared to the prior year. For the year ended June
30, 2025, net income per share was $0.25 for basic and diluted shares. For the year ended June 30, 2024, net income per share was $0.06
for basic and diluted shares.

22

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 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