NETSOL Technologies, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 3 - Earnings Per Share

Note 3 - Earnings Per Share

12 Months Ended

Jun. 30, 2014

NOTE 3 – EARNINGS PER SHARE

Basic earnings per share is 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 year ended June 30, 2014
	Net Loss			Shares		Per Share
Basic loss per share:
Net loss available to common shareholders	$	(11,356,047	)		9,063,345	$	(1.25	)
Effect of dilutive securities
Stock options		-			-		-
Warrants		-			-		-
Diluted loss per share	$	(11,356,047	)		9,063,345	$	(1.25	)

	For the year ended June 30, 2013
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	7,863,143		8,201,247	$	0.96
Effect of dilutive securities
Stock options		-		47,168		-
Warrants		-		40,536		-
Diluted income per share	$	7,863,143		8,288,951	$	0.95

As of June 30, 2014 and 2013, 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 June 30,
	2014		2013

Stock Options		232,059		-
Warrants		3,295		-
		235,354		-