Annual report [Section 13 and 15(d), not S-K Item 405]

BUSINESS COMBINATIONS AND COMMON CONTROL TRANSACTIONS

v3.25.2
BUSINESS COMBINATIONS AND COMMON CONTROL TRANSACTIONS
 12 Months Ended
Jun. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
BUSINESS COMBINATIONS AND COMMON CONTROL TRANSACTIONS

NOTE 18– BUSINESS COMBINATIONS AND COMMON CONTROL TRANSACTIONS

 

In July 2024, NTA, a wholly owned subsidiary of NetSol Technologies, Inc. (“NTI”), entered into a share purchase agreement with NTI and the remaining minority shareholders to acquire all issued and outstanding shares of OTOZ®. In March 2025, NTA filed the merger documents with the respective state agencies with an effective date of April 1, 2025.

 

The transaction occurred between entities under common control. Accordingly, all assets and liabilities of OTOZ® were transferred to NTA at their carrying amounts, and no gain or loss was recognized as a result of the transaction. This merger did not result in any change to the consolidated accounting for the assets and liabilities transferred, as both entities were controlled by NTI before and after the transaction. The transaction was accounted for in accordance with ASC 805-50, Business Combinations – Related Parties and had no material impact on the consolidated financial statements except for the change in legal entity structure. Details of the purchase price and accounting treatment for the noncontrolling interest are provided in Note 19 – Non-Controlling Interest in Subsidiaries.