NON-CONTROLLING INTEREST IN SUBSIDIARIES |
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| Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NON-CONTROLLING INTEREST IN SUBSIDIARIES |
NOTE 19 – NON-CONTROLLING INTEREST IN SUBSIDIARIES
The Company had non-controlling interests in several of its subsidiaries. The balance of non-controlling interest was as follows:
During the year ended June 30, 2026, employees of NetSol PK, a majority-owned subsidiary of the Company, exercised stock options to purchase an aggregate of shares of the subsidiary’s common stock for total proceeds of $425,661. Of this amount, $413,241 was received during the year ended June 30, 2026, 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 31.48% at June 30, 2026. The carrying amount of the non-controlling interest was increased by $647,514, and the difference of $221,853 was recognized as a decrease in additional paid-in capital in the Company’s consolidated equity. During the year ended June 30, 2025, NetSol PK, a majority-owned subsidiary of the Company, repurchased shares of its outstanding common stock from the open market for $1,503,662. The repurchase did not result in a change of control and was therefore accounted for as an equity transaction in accordance with ASC 810-10. Due to this purchase, the non-controlling interest in NetSol PK, NetSol Innovation and NAMECET, decreased from 32.38% at June 30, 2024 to 30.24% at June 30, 2025. The carrying amount of the non-controlling interest was reduced by $1,532,797, and the difference of $29,135 was recognized as an increase in additional paid-in capital in the Company’s consolidated equity.
During the year ended June 30, 2026, the Company dissolved OTOZ® Thai. As a result, the effective non-controlling interest in Otoz® Thai decreased to 0.00%.
During
the year ended June 30, 2025, the Company acquired the remaining minority shares from the OTOZ® non-controlling
shareholders for $8,878. As a result, the Company’s ownership interest increased, reducing the non-controlling interest from 5.59%
to 0.0%. The effective non-controlling interest in Otoz® Thai decreased to 0.01%. OTOZ® was merged into NTA during
the year ended June 30, 2025.
The following schedule discloses the effect on the Company’s equity due to the changes in the Company’s ownership interest.
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