Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 386

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 386
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 from the non-GAAP adjusted EBITDA and non-GAAP
adjusted EBITDA 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.

23

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 years ended June 30, 2025, and 2024 are as follows:

    For the Years

    Ended June 30,

    2025 
    2024

    Net Income (loss) attributable to NetSol 
    $2,923,233  
    $683,873 
  
    Non-controlling interest 
     1,647,686  
     1,394,056 
  
    Income taxes 
     1,476,338  
     1,145,518 
  
    Depreciation and amortization 
     1,463,783  
     1,721,800 
  
    Interest expense 
     871,355  
     1,142,166 
  
    Interest (income) 
     (1,871,040) 
     (1,911,258)
  
    EBITDA 
    $6,511,355  
    $4,176,155 
  
    Add back: 

    Non-cash stock-based compensation 
     208,116  
     308,569 
  
    Adjusted EBITDA, gross 
    $6,719,471  
    $4,484,724 
  
    Less non-controlling interest (a) 
     (2,017,274) 
     (1,810,394)
  
    Adjusted EBITDA, net 
    $