NETSOL Technologies, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)

3 Months Ended

Sep. 30, 2025

SCHEDULE OF FINANCIAL INFORMATION BY REPORTABLE SEGMENT

The following tables present financial information by reportable segment for the three months ended September 30, 2025:

	North America		Europe			Asia - Pacific			Total
	For the Three Months Ended September 30, 2025
	North America		Europe			Asia - Pacific			Total
Revenues
License	$	-	$	72,225		$	-		$	72,225
Subscription and support		1,486,397		1,484,646			5,989,512			8,960,555
Services		621,966		1,747,446			3,609,731			5,979,143
Intersegment revenues		-		-			1,061,771			1,061,771
Total revenue from reportable segments		2,108,363		3,304,317			10,661,014			16,073,694
Elimination of intersegment revenues		-		-			-			(1,061,771	)
Total consolidated revenues									$	15,011,923

Revenues from reportable segments		2,108,363		3,304,317			10,661,014			16,073,694

Salaries and consultants		492,636		1,133,001			5,338,889			6,964,526
Travel		53,734		67,360			377,078			498,172
Depreciation		-		-			208,731			208,731
Other (a)		501,302		918,027			1,070,946			2,490,275
Gross Profit		1,060,691		1,185,929			3,665,370			5,911,990

Selling and marketing		637,561		395,008			1,907,598			2,940,167
Depreciation		1,594		44,608			69,673			115,875
General and administrative		299,026		889,577			2,272,570			3,461,173
Income (loss) from operations - reportable segments	$	122,510	$	(143,264	)	$	(584,471	)	$	(605,225	)

Reconciliation:
Income (loss) from operations - reportable segments									$	(605,225	)
Corporate operating expenses										(1,233,481	)
Interest expense										(174,611	)
Interest income										280,974
Gain (loss) on foreign currency exchange transactions										(286,917	)
Other income (expense)										17,670
Net income (loss) before income taxes									$	(2,001,590	)

	North America		Europe		Asia - Pacific		Total
	As of
	September 30, 2025
	North America		Europe		Asia - Pacific		Total
Segment assets:
Cash	$	194,594	$	937,579	$	21,035,388	$	22,167,561
Accounts receivable, net of allowance		827,171		1,996,084		3,497,733		6,320,988
Revenue in excess of billings, net of allowance		1,547,541		3,137,993		10,190,170		14,875,704
Other segment assets (b)		281,641		1,406,229		7,629,704		9,317,574
Total segment assets	$	2,850,947	$	7,477,885	$	42,352,995	$	52,681,827

Asset Reconciliation
Total assets for reportable segments								52,681,827
Corporate assets								641,163
Goodwill not allocated to segments								9,302,524
Consolidated total							$	62,625,514

	North America		Europe		Asia - Pacific		Total
	For the Three Months ended September 30, 2025
	North America		Europe		Asia - Pacific		Total
Expenditures for property, plant and equipment	$	21,099	$	38,187	$	425,995	$	485,281

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2025

(Unaudited)

The following tables present financial information by reportable segment for the three months ended September 30, 2024:

	North America		Europe			Asia - Pacific			Total
	For the Three Months Ended September 30, 2024
	North America		Europe			Asia - Pacific			Total
Revenues
License	$	-	$	1,229		$	-		$	1,229
Subscription and support		1,262,645		892,772			6,037,054			8,192,471
Services		1,606,016		1,601,285			3,197,497			6,404,798
Intersegment revenues		-		-			621,392			621,392
Total revenue from reportable segments		2,868,661		2,495,286			9,855,943			15,219,890
Elimination of intersegment revenues		-		-			-			(621,392	)
Total consolidated revenues									$	14,598,498

Revenues from reportable segments		2,868,661		2,495,286			9,855,943			15,219,890

Salaries and consultants		483,609		1,001,075			4,719,050			6,203,734
Travel		139,775		14,730			416,357			570,862
Depreciation		-		-			228,550			228,550
Other (a)		260,445		645,924			746,263			1,652,632
Gross Profit		1,984,832		833,557			3,745,723			6,564,112

Selling and marketing		548,099		273,368			1,400,888			2,222,355
Depreciation		471		59,680			77,296			137,447
General and administrative		221,426		927,202			2,359,305			3,507,933
Income (loss) from operations - reportable segments	$	1,214,836	$	(426,693	)	$	(91,766	)	$	696,377

Reconciliation:
Income (loss) from operations - reportable segments									$	696,377
Corporate operating expenses										(1,456,535	)
Interest expense										(258,219	)
Interest income										769,867
Gain (loss) on foreign currency exchange transactions										542,545
Other income (expense)										153,491
Net income (loss) before income taxes									$	447,526

	North America		Europe		Asia - Pacific		Total
	As of
	June 30, 2025
	North America		Europe		Asia - Pacific		Total
Segment assets:
Cash	$	387,955	$	1,138,048	$	15,248,031	$	16,774,034
Accounts receivable, net of allowance		581,872		1,084,418		5,861,282		7,527,572
Revenue in excess of billings, net of allowance		1,967,757		3,178,780		13,987,848		19,134,385
Other segment assets (b)		243,550		1,580,534		7,066,725		8,890,809
Total segment assets	$	3,181,134	$	6,981,780	$	42,163,886	$	52,326,800

Asset Reconciliation
Total assets for reportable segments								52,326,800
Corporate assets								811,785
Goodwill not allocated to segments								9,302,524
Consolidated total							$	62,441,109

	North America		Europe		Asia - Pacific		Total
	For the Three Months ended September 30, 2024
	North America		Europe		Asia - Pacific		Total
Expenditures for property, plant and equipment	$	3,841	$	37,494	$	59,402	$	100,737

(a)

Other costs of goods sold include computer costs, third-party hardware and software costs, repair and maintenance, insurance, utilities, and communication expenses.

(b)

Other assets include property and equipment, right of use of assets, advances, deposits, and prepayments.