NETSOL Technologies, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Earnings/(Loss) Per Share

Note 4 - Earnings/(Loss) Per Share

3 Months Ended

Sep. 30, 2012

NOTE 4 – EARNINGS/ (LOSS) PER SHARE

Basic earnings per share are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, warrants, and stock awards.

The components of basic and diluted earnings per share were as follows:

For the three months ended September 30, 2012	Net Income		Shares		Per Share
Basic income per share:	$	929,125		7,591,891	$	0.12
Net income available to common shareholders
Effect of dilutive securities
Warrants				7,245
Diluted income per share	$	929,125		7,599,136	$	0.12

For the three months ended September 30, 2011	Net Income			Shares		Per Share
Basic loss per share:	$	(1,458,708	)		5,588,327	$	(0.26	)
Net income available to common shareholders
Effect of dilutive securities
Warrants
Diluted loss per share	$	(1,458,708	)		5,588,327	$	(0.26	)

- Definition

The entire disclosure for earnings per share.

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