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

6 Months Ended

Dec. 31, 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 notes payable and stock awards.

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

	For the three months ended December 31, 2013								For the six months ended December 31, 2013
	Net Loss			Shares		Per Share			Net Loss			Shares		Per Share
Basic loss per share:
Net loss available to common shareholders	$	(1,626,908	)		9,056,024	$	(0.18	)	$	(2,724,023	)		9,006,015	$	(0.30	)
Effect of dilutive securities
Stock options		-			-		-			-			-		-
Warrants		-			-		-			-			-		-
Diluted loss per share	$	(1,626,908	)		9,056,024	$	(0.18	)	$	(2,724,023	)		9,006,015	$	(0.30	)


	For the three months ended December 31, 2012						For the six months ended December 31, 2012
	Net Income		Shares		Per Share		Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	2,222,983		7,957,521	$	0.28	$	3,152,108		7,774,719	$	0.41
Effect of dilutive securities
Stock options				-		-		-		-		-
Warrants				11,077		-		-		11,077		-
Diluted income per share	$	2,222,983		7,968,598	$	0.28	$	3,152,108		7,785,796	$	0.40

As of December 31, 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 December 31,
	2013		2012

Stock Options		18,801		-
Warrants		15,022		-
Convertible Note		-		83,820
		33,823		83,820