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

Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Earnings/(Loss) Per Share

Note 4 - Earnings/(Loss) Per Share

3 Months Ended

Sep. 30, 2011

NOTE 4 – EARNINGS/ (LOSS) 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 three months ended September 30, 2011	Net Loss			Shares		Per Share
Basic loss per share:	$	(1,458,708	)		55,883,268	$	(0.03	)
Dividend to preferred shareholders		-
Net income available to common shareholders
Effect of dilutive securities *
Stock options
Warrants
Diluted loss per share	$	(1,458,708	)		55,883,268	$	(0.03	)


For the three months ended September 30, 2010	Net Income			Shares		Per Share
Basic income per share:	$	1,566,980			39,544,096	$	0.04
Dividend to preferred shareholders		-				$	-
Net income available to common shareholders
Effect of dilutive securities
Stock options					1,159,964
Warrants					2,547,459
Diluted income per share	$	1,566,980			43,251,519	$	0.04

*As there is a loss, these securities are anti-dilutive. The basic and diluted loss per share is the same for the three months ended September 30, 2011