| NON-CONTROLLING INTEREST IN SUBSIDIARY |
NOTE
17 – 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, 2026 | |
| | |
| | |
| |
| NetSol
PK | |
| 31.41 | % | |
$ | 6,870,901 | |
| NetSol
Innovation | |
| 31.41 | % | |
| (792,749 | ) |
| NAMECET | |
| 31.41 | % | |
| 1,034,542 | |
| NIAI | |
| 31.41 | % | |
| (16,258 | ) |
| NetSol
Thai | |
| 0.006 | % | |
| (196 | ) |
| OTOZ
Thai | |
| 0.01 | % | |
| 7 | |
| Total | |
| | | |
$ | 7,096,247 | |
| 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 | |
| Total | |
| | | |
$ | 4,425,365 | |
During
the nine months ended March 31, 2026, employees of NetSol PK, a majority-owned subsidiary of the Company, exercised stock options to
purchase an aggregate of 1,443,874 shares of the subsidiary’s common stock for total proceeds of $399,620. Of this amount, $387,200
was received during the nine months ended March 31, 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 31.41% at March 31, 2026. The carrying amount of the non-controlling interest was increased by $602,493, and the difference of $202,873
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
March
31, 2026
(Unaudited)
The
following schedule discloses the effect on the Company’s equity due to the changes in the Company’s ownership interest.
SCHEDULE OF CHANGE IN OWNERSHIP INTEREST
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
For
the Three Months | | |
For
the Nine Months | |
| | |
Ended
March 31, | | |
Ended
March 31, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
| | |
| | |
| | |
| |
| Decrease
in paid-in capital for purchase of 177,558
shares of OTOZ Inc common stock | |
| - | | |
| - | | |
| - | | |
| (112,010 | ) |
| Net
income (loss) attributable to NetSol Transfer to (from) non-controlling interest | |
$ | 1,300,964 | | |
$ | 1,423,968 | | |
$ | (809,567 | ) | |
$ | 347,721 | |
| Decrease
in paid-in capital for purchase of 177,558
shares of OTOZ Inc common stock | |
| - | | |
| - | | |
| - | | |
| (112,010 | ) |
| 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 | |
| Decrease
in paid-in capital for option exercise of 1,443,874
shares of common stock of NetSol PK by employees | |
| (12,953 | ) | |
| | | |
| (202,873 | ) | |
| - | |
| Net
transfer to (from) non-controlling interest | |
| (12,953 | ) | |
| 29,135 | | |
| (202,873 | ) | |
| (82,875 | ) |
| Change
from net income (loss) attributable to NetSol and
transfer (to) from non-controlling interest | |
$ | 1,288,011 | | |
$ | 1,453,103 | | |
$ | (1,012,440 | ) | |
$ | 264,846 | |
|