NOTE 22 – NON-CONTROLLING INTEREST IN SUBSIDIARY

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

NetSol PK

During the years ended June 30, 2019 and 2018, employees of NetSol PK exercised 20,000 and 67,000 options of common stock and NetSol PK received cash of $2,650 and $10,349, respectively. During the year ended June 30, 2018, the Company purchased 55,500 shares of common stock of NetSol PK from the open market for $33,987. Due to the exercise of options, the non-controlling interest increased from 33.79% at June 30, 2018 to 33.80% at June 30, 2019.

During the years ended June 30, 2019 and 2018, NetSol PK paid a cash dividend of $1,675,936 and $1,234,991, respectively.

VLS

On June 30, 2019, NTE entered into a share purchase agreement with Investec (“Investec Agreement”) to acquire the reaming 49% from Investec whereby VLS would become a wholly owned subsidiary. The Company purchased the remaining shares in an effort to consolidate minority interests and streamline operations. The purchase price was £500,000 ($635,000) with £250,000 being paid on June 30, 2019 and £250,000 ($317,500) due on December 31, 2019. The purchase price includes a contingency payment based on VLS achieving certain revenues. The maximum amount due under the contingency formula is £230,000 ($292,100). The Company determined the fair value of the contingency to be £230,000 ($292,100) at June 30, 2019 which is recorded in “Other Payables”.