Quarterly report [Sections 13 or 15(d)]

STOCKHOLDERS??? EQUITY

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STOCKHOLDERS’ EQUITY
 9 Months Ended
Mar. 31, 2025
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 13 - STOCKHOLDERS’ EQUITY

 

During the three and nine months ended March 31, 2025, the Company issued nil and 29,124 shares of common stock for services rendered by the independent members of the Board of Directors as part of their board compensation. These shares were valued at the fair market value of $nil and $79,500, respectively. The Company grants share-based compensation to its independent Board of Directors as part of their service compensation. These awards are typically settled in shares under the Company’s equity incentive plan. As of March 31, 2025, the Company did not have a sufficient number of shares available for issuance under the current equity incentive plan to settle the equity portion of the director’s compensation for the period. In accordance with ASC 718 – Compensation – Stock Compensation, the Company has accounted for these awards as a liability and has recorded an accrued liability of $39,750 as of March 31, 2025. The Company will reclassify the liability to equity upon the issuance of shares once additional shares are made available under a new equity incentive plan, or will settle the liability in cash if shares are not issued.

 

During the three and nine months ended March 31, 2025, the employees of the Company exercised 20,000 and 220,000 options of common stock with an exercise price of $2.15 per share for cash proceeds of $473,000.

 

 

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

March 31, 2025

(Unaudited)

 

Stock Grants

 

The following table summarizes stock grants awarded as compensation:

 

   

# Number

of shares

    

Weighted Average

Grant Date

Fair Value ($)

  
Unvested, June 30, 2024     -     $ -  
Granted     68,652     $ 2.62  
Vested     (68,652 )   $ 2.62  
Unvested, March 31, 2025     -     $ -  

 

For the three and nine months ended March 31, 2025, the Company recorded compensation expense of $39,750 and $79,500, respectively. For the three and nine months ended March 31, 2024, the Company recorded compensation expense of $39,750 and $128,300, respectively. The weighted average grant date fair value is determined by the Company’s closing stock price on the grant date.