NETSOL Technologies, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

NON-CONTROLLING INTEREST IN SUBSIDIARY

NON-CONTROLLING INTEREST IN SUBSIDIARY

12 Months Ended

Jun. 30, 2023

NOTE 21 – 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 June 30, 2023

NetSol PK		32.38	%	$	3,314,659
NetSol-Innovation		32.38	%		(223,504	)
NAMECET		32.38	%		(5,384	)
NetSol Thai		0.006	%		(194	)
OTOZ Thai		5.60	%		(23,572	)
OTOZ		5.59	%		(86,952	)
Total				$	2,975,053

SUBSIDIARY	Non-Controlling Interest %			Non-Controlling Interest at June 30, 2022

NetSol PK		32.38	%	$	5,479,905
NetSol-Innovation		32.38	%		49,146
NetSol Thai		0.006	%		(196	)
OTOZ Thai		5.60	%		(30,768	)
OTOZ		5.59	%		(47,698	)
Total				$	5,450,389

NETSOL TECHNOLOGIES, INC.

Notes to Consolidated Financial Statements

June 30, 2023 and 2022

OTOZ

In September 2022, the Company’s subsidiary, Otoz, issued 191,011 shares to an employee per the employment agreement resulting in an increase of non-controlling interest from 5.59% to 10.94%. The effective shareholding of the non-controlling interest for Otoz Thai increased to 10.95%.

In June 2023, the Company’s subsidiary, Otoz, repurchased the 191,011 shares from the same employee per the employment agreement, after his resignation, resulting in a decrease of non-controlling interest from 10.94% to 5.59%. The effective shareholding of the non-controlling interest for Otoz Thai decreased to 5.60%.

NetSol PK

During the year ended June 30, 2022, NetSol PK purchased 2,000,000 shares of common stock from open market for $950,352. Due to this purchase, the non-controlling interest decreased from 33.88% at June 30, 2021 to 32.38% at June 30, 2022.

The following schedule discloses the effect to the Company’s equity due to the changes in the Company’s ownership interest in NetSol PK and OTOZ.

	2023			2022
	For the Years
	Ended June 30,
	2023			2022

Net income (loss) attributable to NetSol	$	(5,243,748	)	$	(851,156	)
Transfer (to) from non-controlling interest
Increase in paid-in capital for issuance of 191,011 shares of OTOZ Inc common stock		120,565			-
Decrease in paid-in capital for purchase of 191,011 shares of OTOZ Inc common stock		(118,207	)		-
Increase in paid-in capital for purchase of 2,000,000 shares of common stock of NetSol PK from Open Market		-			36,403
Net transfer (to) from non-controlling interest		2,358			36,403
Change from net income (loss) attributable to NetSol and transfer (to) from non-controlling interest	$	(5,241,390	)	$	(814,753	)