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NON-CONTROLLING INTEREST IN SUBSIDIARY

9 Months Ended

Mar. 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:

 SCHEDULE OF BALANCE OF NON-CONTROLLING INTEREST

SUBSIDIARY		Non-Controlling Interest %				Non-Controlling Interest at March 31, 2025
NetSol PK			30.24	%		$	3,971,577
NetSol Innovation			30.24	%			(579,525	)
NAMECET			30.24	%			49,826
NetSol Thai			0.006	%			(163	)
OTOZ Thai			0.01	%			18
OTOZ			0.00	%			-
Total						$	3,441,733

SUBSIDIARY		Non-Controlling Interest %				Non-Controlling Interest at June 30, 2024
NetSol PK			32.38	%		$	4,679,101
NetSol Innovation			32.38	%			137,232
NAMECET			32.38	%			(21,014	)
NetSol Thai			0.006	%			(163	)
OTOZ Thai			5.60	%			(17,483	)
OTOZ			5.59	%			(83,255	)
Total						$	4,694,418

During the quarter ended March 31, 2025, NetSol PK, a majority owned subsidiary of the Company, repurchased 2,690,251 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 March 31, 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.

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2025

(Unaudited)

During the nine months ended March 31, 2025, the Company acquired the remaining 177,558 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%.

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

 SCHEDULE OF CHANGE IN OWNERSHIP INTEREST

		2025				2024				2025				2024
		For the Three Months								For the Nine Months
		Ended March 31,								Ended March 31,
		2025				2024				2025				2024
Net income (loss) attributable to NetSol Transfer to (from) non-controlling interest		$	1,423,968			$	327,549			$	347,721			$	766,755
Decrease in paid-in capital for purchase of 177,558 shares of OTOZ Inc common stock			-				-				(103,132	)			-
Increase in paid-in capital for purchase of 2,690,251 shares of common stock of NetSol PK from Open Market			29,135				-				29,135				-
Net transfer to (from) non-controlling interest			29,135				-				(73,997	)			-
Change from net income (loss) attributable to NetSol and transfer (to) from non-controlling interest		$	1,453,103			$	327,549			$	273,724			$	766,755

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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