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

Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Earnings Per Share

Note 3 - Earnings Per Share

3 Months Ended

Sep. 30, 2013

NOTE 3 – EARNINGS 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, convertible note payable and stock awards.

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

For the three months ended September 30, 2013	Net Loss			Shares		Per Share
Basic loss per share:
Net loss available to common shareholders	$	(1,097,115	)		8,956,007	$	(0.12	)
Effect of dilutive securities
Stock options		-			-		-
Warrants		-			-		-
Diluted loss per share	$	(1,097,115	)		8,956,007	$	(0.12	)

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

As of September 30, 2013 and 2012, the following potential dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.

	As of September 30,
	2013		2012
Stock Options		57,914		-
Warrants		50,202		-
Convertible Note		-		59,644
		108,116		59,644