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NON-CONTROLLING INTEREST IN SUBSIDIARY

12 Months Ended

Jun. 30, 2023

Noncontrolling Interest [Abstract]

NON-CONTROLLING INTEREST IN SUBSIDIARY

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:

 SCHEDULE OF BALANCE OF NON-CONTROLLING INTEREST

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.

 SCHEDULE OF CHANGE IN OWNERSHIP INTEREST

		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	)

X

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 810
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//810/tableOfContent

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- References

No definition available.

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