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Investor Relations Contact: IMS Investor Relations netsol@imsinvestorrelations.com +1 203-972-9200 NETSOL Technologies, Inc.and Subsidiaries Schedule 1: Consolidated Balance Sheets As of As ofASSETSSeptember 30, 2024 June 30, 2024Current assets: Cash and cash equivalents$24,525,956 $19,127,165 Accounts receivable, net of allowance of $15,533 and $398,809 5,936,063 13,049,614 Revenues in excess of billings, net of allowance of $460,743 and $116,148 12,743,571 12,684,518 Other current assets 3,328,112 2,600,786 Total current assets 46,533,702 47,462,083 Revenues in excess of billings, net - long term 866,388 954,029 Property and equipment, net 4,847,869 5,106,842 Right of use assets - operating leases 1,216,835 1,328,624 Other assets 32,341 32,340 Intangible assets, net - - Goodwill 9,302,524 9,302,524 Total assets$62,799,659 $64,186,442 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses$8,414,790 $8,232,342 Current portion of loans and obligations under finance leases 6,443,937 6,276,125 Current portion of operating lease obligations 590,541 608,202 Unearned revenue 6,923,112 8,752,153 Total current liabilities 22,372,380 23,868,822 Loans and obligations under finance leases; less current maturities 92,638 95,771 Operating lease obligations; less current maturities 594,631 688,749 Total liabilities 23,059,649 24,653,342 Stockholders' equity: Preferred stock, $.01 par value; 500,000 shares authorized; - - Common stock, $.01 par value; 14,500,000 shares authorized; 12,383,872 shares issued and 11,444,841 outstanding as of September 30, 2024 , 12,359,922 shares issued and 11,420,891 outstanding as of June 30, 2024 123,842 123,602 Additional paid-in-capital 128,709,890 128,783,865 Treasury stock (at cost, 939,031 shares as of September 30, 2024 and June 30, 2024) (3,920,856) (3,920,856)Accumulated deficit (44,141,518) (44,212,313)Other comprehensive loss (46,049,023) (45,935,616)Total NetSol stockholders' equity 34,722,335 34,838,682 Non-controlling interest 5,017,675 4,694,418 Total stockholders' equity 39,740,010 39,533,100 Total liabilities and stockholders' equity$62,799,659 $64,186,442 NETSOL Technologies, Inc.and Subsidiaries Schedule 2: Consolidated Statement of Operations For the Three Months Ended September 30, 2024 2023Net Revenues: License fees$1,229 $1,280,449 Subscription and support 8,192,471 6,512,243 Services 6,404,798 6,449,489 Total net revenues 14,598,498 14,242,181 Cost of revenues 8,034,386 8,080,164 Gross profit 6,564,112 6,162,017 Operating expenses: Selling, general and administrative 6,964,321 5,432,969 Research and development cost 359,949 378,419 Total operating expenses 7,324,270 5,811,388 Income (loss) from operations (760,158) 350,629 Other income and (expenses) Interest expense (258,219) (276,017)Interest income 769,867 414,718 Gain (loss) on foreign currency exchange transactions 542,545 (134,253)Other income 153,491 57,881 Total other income (expenses) 1,207,684 62,329 Net income before income taxes 447,526 412,958 Income tax provision (229,817) (121,895)Net income 217,709 291,063 Non-controlling interest (146,914) (260,173)Net income attributable to NetSol$70,795 $30,890 Net income per share: Net income per common share Basic$0.006 $0.003 Diluted$0.006 $0.003 Weighted average number of shares outstanding Basic 11,429,695 11,345,856 Diluted 11,482,754 11,345,856 NETSOL Technologies, Inc.and SubsidiariesSchedule 3: Consolidated Statement of Cash Flows For the Three Months Ended September 30, 2024 2023 Cash flows from operating activities: Net income$217,709 $291,063 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 365,997 530,786 Provision (reversal) for bad debts 336,506 7,880 (Gain) loss on sale of assets - (98)Stock based compensation 47,779 60,354 Changes in operating assets and liabilities: Accounts receivable 6,738,384 4,608,881 Revenues in excess of billing 836,403 (1,478,386)Other current assets (222,359) 92,686 Accounts payable and accrued expenses 10,546 341,722 Unearned revenue (2,813,220) (2,791,269) Net cash provided by operating activities 5,517,745 1,663,619 Cash flows from investing activities: Purchases of property and equipment (100,737) (371,630)Sales of property and equipment - 1,230 Purchase of subsidiary shares (7,895) - Net cash used in investing activities (108,632) (370,400) Cash flows from financing activities: Proceeds from the exercise of stock options 21,500 - Proceeds from bank loans 250,000 - Payments on finance lease obligations and loans - net (118,311) (44,474) Net cash provided by (used in) financing activities 153,189 (44,474) Effect of exchange rate changes (163,511) (230,322) Net increase (decrease) in cash and cash equivalents 5,398,791 1,018,423 Cash and cash equivalents at beginning of the period 19,127,165 15,533,254 Cash and cash equivalents at end of period $24,525,956 $16,551,677 NETSOL Technologies, Inc.and Subsidiaries Schedule 4: Reconciliation to GAAP For the Three Months Ended September 30, 2024 2023 Net Income (loss) attributable to NetSol$70,795 $30,890 Non-controlling interest 146,914 260,173 Income taxes 229,817 121,895 Depreciation and amortization 365,997 530,786 Interest expense 258,219 276,017 Interest (income) (769,867) (414,718)EBITDA$301,875 $805,043 Add back: Non-cash stock-based compensation 47,779 60,354 Adjusted EBITDA, gross$349,654 $865,397 Less non-controlling interest (a) (145,781) (399,440)Adjusted EBITDA, net$203,873 $465,957 Weighted Average number of shares outstanding Basic 11,429,695 11,345,856 Diluted 11,482,754 11,345,856 Basic adjusted EBITDA$0.02 $0.04 Diluted adjusted EBITDA$0.02 $0.
3% increase in 1Q’25 total net revenues to $14.6 million26% increase in 1Q’25 subscription and support revenues to $8.2 million45% gross margins in 1Q’25Net income in 1Q’25 of $71,000 building on FY’24 profitabilityCash and cash equivalents increased to $24.5 millionSigned expansion agreement with major automaker in China increasing contract value to over $30 millionSigned $16 million agreement with major automaker in the United States ENCINO, Calif., Nov.13, 2024 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc.(Nasdaq: NTWK), a global business services and asset finance solutions provider, reported results for the fiscal first quarter of 2025 ended September 30, 2024.
Moreover, we are strengthening our balance sheet and are aggressively but strategically investing in the growth of our business, with a particular focus on AI, as we expand our product offerings and grow our presence in both new and existing geographic markets.” Fiscal First Quarter 2025 Financial Results Total net revenues for the first quarter of fiscal 2025 increased 3% to $14.6 million, compared with $14.2 million in the prior year period, driven by a 26% increase in subscription and support revenues and consistent services revenues in the quarter.
