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

Quarterly report pursuant to Section 13 or 15(d)

Note 14 - Incentive and Non-Statutory Stock Option Plan

Note 14 - Incentive and Non-Statutory Stock Option Plan

9 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 14 - INCENTIVE AND NON-STATUTORY STOCK OPTION PLAN

Common stock purchase options and warrants consisted of the following:

OPTIONS:

	# of shares			Weighted Ave Exericse Price		Weighted Average Remaining Contractual Life (in years)		Aggregated Intrinsic Value

Outstanding and exercisable, June 30, 2013		311,462		$	15.65		3.3
Granted		112,793		$	6.29
Exercised		(112,793	)	$	6.29
Expired / Cancelled		(54,000	)	$	32.92
Outstanding and exercisable, March 31, 2014		257,462		$	12.03		2.88	$	-

WARRANTS:
Outstanding and exercisable, June 30, 2013		163,124		$	7.29		3.19
Granted / adjusted		-			-
Exercised		-			-
Expired		-			-
Outstanding and exercisable, March 31, 2014		163,124		$	7.29		2.45	$	-

The following table summarizes information about stock options and warrants outstanding and exercisable at March 31, 2014.

Exercise Price				Number Outstanding and Exercisable		Weighted Average Remaining Contractual Life		Weighted Ave Exericse Price
OPTIONS:

	$0.10	-	$9.90		183,462		3.22	$	7.21
	$10.00	-	$19.90		14,000		1.86	$	18.18
	$20.00	-	$29.90		60,000		2.07	$	25.33
Totals					257,462		2.88	$	12.03

WARRANTS:
	$3.10	-	$7.73		163,124		2.45	$	7.29
Totals					163,124		2.45	$	7.29

All options and warrants granted are vested and exercisable as of March 31, 2014.

The following table summarizes stock grants awarded as compensation:

	# of shares			Weighted Average Grant Date Fair Value ($)

Unvested, June 30, 2012		-			-
Granted		3,750		$	5.48
Vested		(3,750	)	$	5.48
Unvested, June 30, 2013		-			-
Granted		86,899		$	10.68
Vested		(65,173	)	$	10.68
Unvested, March 31, 2014		21,726		$	10.68

OPTIONS

During the nine months ended March 31, 2014, the Company granted 112,793 options to employees with exercise prices of $3.83 to $8 per share and expiration date of 1 to 3 months, vesting immediately. Using the Black-Scholes method to value the options, the Company recorded $189,405 in compensation expense for these options in the accompanying condensed consolidated financial statements. The fair market value was calculated using the Black-Scholes option pricing model with the following assumptions:

·	Risk-free interest rate - 0.05% - 0.06%

·	Expected life – 1 month - 3 months

·	Expected volatility – 17.5% - 51.26%

·	Expected dividend - 0%

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details