Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 414

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 414
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 and customary agreements in our competitive marketplace.

Tax
and Accounting Implications 

Deductibility
of Executive Compensation 

As
part of its role, the Compensation Committee reviews and considers the deductibility of executive compensation under Section 162(m) of
the Internal Revenue Code, which provides that we may not deduct compensation of more than $1,000,000 that is paid to certain individuals.
The Compensation Committee is aware of the limitations imposed by Section 162(m) and considers the issue of deductibility when and if
circumstances warrant. The committee reviews proposed compensation plans in light of applicable tax deductions, and generally seeks to
maximize the deductibility for tax purposes of all elements of compensation. However, the committee may approve compensation that does
not qualify for deductibility, including stock option and time-based restricted stock awards, if and when the committee deems it to be
in the best interests of the Company and our shareholders.

Accounting
for Stock-Based Compensation 

We account for stock-based payments, including awards under our Employee Stock Option Plans, in accordance with the of
Financial Accounting Standards Board’s Accounting Standards Codification Topic 718, Compensation – Stock
Compensation.

Summary
Compensation 

The
following table shows the compensation for the fiscal years ended June 30, 2025 and 2024, earned by our Chairman and Chief Executive
Officer, our Chief Financial Officer who is our Principal Financial and Accounting Officer, and others considered to be executive officers
of the Company.

    Name and Principle Position 
    Fiscal Year Ended  
    Salary ($)  
    Bonus ($)  
    Stock Awards ($) (1)  
    Option Awards ($)  
    All Other Compensation ($)  
    Total ($) 
  
    Najeeb Ghauri 
     2025  
    $840,000  
    $210,340(2) 
    $    -  
    $-(3) 
    $230,400(4) 
    $1,280,740 
  
    CEO & Chairman 
     2024  
    $693,000  
    $472,890(2) 
    $-  
    $20,285(3) 
    $226,400(4) 
    $1,412,575 
  
    Naeem Ghauri 
     2025  
    $1,045,714(5) 
    $250,000(6) 
    $-