Quarterly report [Sections 13 or 15(d)]

NON-CONTROLLING INTEREST IN SUBSIDIARY

v3.25.4
NON-CONTROLLING INTEREST IN SUBSIDIARY
 6 Months Ended
Dec. 31, 2025
Noncontrolling Interest [Abstract]  
NON-CONTROLLING INTEREST IN SUBSIDIARY

NOTE 16 – 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:

 

SUBSIDIARY   Non-Controlling Interest %    

Non-Controlling Interest at

December 31, 2025

  
             
NetSol PK     31.33 %   $ 5,572,128  
NetSol Innovation     31.33 %     (816,369 )
NAMECET     31.33 %     1,252,670  
NIAI     31.33 %     (9,576 )
NetSol Thai     0.006 %     (196 )
OTOZ Thai     0.01 %     (1 )
Total           $ 5,998,656  

 

SUBSIDIARY   Non-Controlling Interest %     Non-Controlling Interest at
June 30, 2025		  
             
NetSol PK     30.24 %   $ 4,496,723  
NetSol Innovation     30.24 %     (637,529 )
NAMECET     30.24 %     567,819  
NIAI     30.24 %     (1,471 )
NetSol Thai     0.006 %     (184 )
OTOZ Thai     0.01 %     7  
OTOZ     0.00 %     -  
Total           $ 4,425,365  

 

During the six months ended December 31, 2025, employees of NetSol PK, a majority-owned subsidiary of the Company, exercised stock options to purchase an aggregate of 1,346,330 shares of the subsidiary’s common stock for total proceeds of $370,553. Of this amount, $358,133 was received during the six months ended December 31, 2025, and $12,420 was received during the fiscal year ended June 30, 2025. Due to this exercise, the non-controlling interest in NetSol PK, NetSol Innovation, NAMECET and NIAI, increased from 30.24% at June 30, 2025 to 31.33% at December 31, 2025. The carrying amount of the non-controlling interest was increased by $560,473, and the difference of $189,920 was recognized as a decrease in additional paid-in capital in the Company’s consolidated equity.

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

December 31, 2025

(Unaudited)

 

The following schedule discloses the effect on the Company’s equity due to the changes in the Company’s ownership interest.

  

                         
    For the Three Months     For the Six Months  
    Ended December 31,     Ended December 31,  
    2025     2024     2025     2024  
                         
Net income (loss) attributable to NetSol   $ 246,757     $ (1,147,042 )   $ (2,110,531 )   $ (1,076,247 )
Transfer to (from) non-controlling interest                                
Decrease in paid-in capital for purchase of 177,558 shares of OTOZ Inc common stock             31,004       -       (112,010 )
Decrease in paid-in capital for option exercise of 1,346,330 shares of common stock of NetSol PK by employees     (151,204 )             (189,920 )     -  
Net transfer to (from) non-controlling interest     (151,204 )     31,004       (189,920 )     (112,010 )
Change from net income (loss) attributable to NetSol and transfer (to) from non-controlling interest   $ 95,553     $ (1,116,038 )   $ (2,300,451 )   $ (1,188,257 )