Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 56

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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DA per basic and diluted share calculations. Although stock-based compensation expense is calculated in accordance with
current GAAP and constitutes an ongoing and recurring expense, such expense is excluded from non-GAAP results because it is not an expense
which generally requires cash settlement by NetSol, and therefore is not used by us to assess the profitability of our operations. We
also believe the exclusion of stock-based compensation expense provides a more useful comparison of our operating results to the operating
results of our peers.

Non-controlling
interest: We add back the non-controlling interest in calculating gross adjusted EBITDA and then subtract out the income taxes, depreciation
and amortization and net interest expense attributable to the non-controlling interest to arrive at a net adjusted EBITDA.

Page 38

Our
reconciliation of the non-GAAP financial measures of adjusted EBITDA and non-GAAP earnings per basic and diluted share to the most comparable
GAAP measures for the three months ended September 30, 2025 and 2024 are as follows:

    For the Three Months Ended September 30, 

    2025  
    2024 

    Net Income (loss) attributable to NetSol 
    $(2,357,288) 
    $70,795 
  
    Non-controlling interest 
     139,923  
     146,914 
  
    Income taxes 
     215,775  
     229,817 
  
    Depreciation and amortization 
     324,606  
     365,997 
  
    Interest expense 
     174,611  
     258,219 
  
    Interest (income) 
     (280,974) 
     (769,867)
  
    EBITDA 
    $(1,783,347) 
    $301,875 
  
    Add back: 

    Non-cash stock-based compensation 
     145,400  
     47,779 
  
    Adjusted EBITDA, gross 
    $(1,637,947) 
    $349,654 
  
    Less non-controlling interest (a) 
     (223,948) 
     (145,781)
  
    Adjusted EBITDA, net 
    $(1,861,895) 
    $203,873 

    Weighted Average number of shares outstanding 

    Basic 
     11,767,811