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

Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

Earnings Per Share

12 Months Ended

Jun. 30, 2016

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, and stock awards.

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

	For the year ended June 30, 2016
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	3,402,761		10,391,157	$	0.33
Effect of dilutive securities
Stock options		-		190,595		-
Warrants		-		3,083		-
Diluted income per share	$	3,402,761		10,584,835	$	0.32

	For the year ended June 30, 2015
	Net Loss			Shares		Per Share
Basic loss per share:
Net loss available to common shareholders	$	(5,548,818	)		9,728,122	$	(0.57	)
Effect of dilutive securities
Stock options		-			-		-
Warrants		-			-		-
Diluted loss per share	$	(5,548,818	)		9,728,122	$	(0.57	)

As of June 30, 2016 and 2015, the following potential dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.

	2016		2015

Stock Options		-		708,133
Warrants		-		163,124
		-		871,257