NON-CONTROLLING INTEREST IN SUBSIDIARIES

12 Months Ended

Jun. 30, 2026

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:

SUBSIDIARY		Non-Controlling Interest %				Non-Controlling Interest at June 30, 2026

NetSol PK			31.48	%		$	7,300,697
NetSol Innovation			31.48	%			(767,076	)
NAMECET			31.48	%			1,447,641
NIAI			31.48	%			(7,031	)
NetSol Thai			0.006	%			(336	)
OTOZ^®Thai			0.00	%			-
Total						$	7,973,895

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 year ended June 30, 2026, employees of NetSol PK, a majority-owned subsidiary of the Company, exercised stock options to purchase an aggregate of 1,543,987 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 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 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 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%. 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.

		2026				2025
		For the Years
		Ended June 30,
		2026				2025

Net income attributable to NetSol		$	2,950,353			$	2,923,233
Transfer to (from) non-controlling interest
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
Decrease in paid-in capital for option exercise of 1,543,987 shares of common stock of NetSol PK by employees			(221,853	)			-
Net transfer (to) from non-controlling interest			(221,853	)			(82,875	)
Change from net income attributable to NetSol and transfer (to) from non-controlling interest		$	2,728,500			$	2,840,358