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

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

9 Months Ended

Mar. 31, 2020

NOTE 4 – 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 and stock awards.

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

	For the three months ended March 31, 2020						For the nine months ended March 31, 2020
	Net Income		Shares		Per Share		Net Loss			Shares		Per Share
Basic income (loss) per share:
Net income (loss) available to common shareholders	$	1,000,807		11,753,063	$	0.09	$	(241,165	)		11,713,827	$	(0.02	)
Effect of dilutive securities
Stock options		-		-		-		-			-		-
Share grants		-		-		-		-			-		-
Diluted income (loss) per share	$	1,000,807		11,753,063	$	0.09	$	(241,165	)		11,713,827	$	(0.02	)

	For the three months ended March 31, 2019						For the nine months ended March 31, 2019
	Net Income		Shares		Per Share		Net Income		Shares		Per Share

Basic income per share:
Net income available to common shareholders	$	1,267,560		11,656,098	$	0.11	$	5,085,778		11,580,066	$	0.44
Effect of dilutive securities
Stock options		-		4,948		-		-		5,686		-
Share grants		-		30,296		-		-		-		-
Diluted income per share	$	1,267,560		11,691,342	$	0.11	$	5,085,778		11,585,752	$	0.44

The following potential dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.

	For the Three Months				For the Nine Months
	Ended March 31,				Ended March 31,
	2020		2019		2020		2019

Share Grants		101,790		-		101,790		-
		101,790		-		101,790		-