Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 638

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 2
Chunk 638
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,239,360 with an increase of $1,678,200 on a constant currency basis, compared to the prior year. For the year ended June
30, 2025, net income per share was $0.25 for basic and diluted shares. For the year ended June 30, 2024, net income per share was $0.06
for basic and diluted shares.

22

Non-GAAP
Financial Measures

Regulation
S-K Item 10(e), “Use of Non-GAAP Financial Measures in Commission Filings,” defines and prescribes the conditions for use
of non-GAAP financial information. Our measures of adjusted EBITDA and adjusted EBITDA per basic and diluted share meet the definition
of a non-GAAP financial measure.

We
define the non-GAAP measures as follows:

●EBITDA
                                            is GAAP net income before net interest expense, income tax expense, depreciation and amortization.

●Non-GAAP
                                            adjusted EBITDA is EBITDA plus stock-based compensation expense.

●Adjusted
                                            EBITDA per basic and diluted share – Adjusted EBITDA allocated to common stock divided
                                            by the weighted average shares outstanding and diluted shares outstanding.

We
use non-GAAP measures internally to evaluate the business and believe that presenting non-GAAP measures provides useful information to
investors regarding the underlying business trends and performance of our ongoing operations as well as useful metrics for monitoring
our performance and evaluating it against industry peers. The non-GAAP financial measures presented should be used in addition to, and
in conjunction with, results presented in accordance with GAAP, and should not be relied upon to the exclusion of GAAP financial measures.
Management strongly encourages investors to review our consolidated financial statements in their entirety and not to rely on any single
financial measure in evaluating the Company.

The
non-GAAP measures reflect adjustments based on the following items:

EBITDA:
We report EBITDA as a non-GAAP metric by excluding the effect of net interest expense, income tax expense, depreciation and amortization
from net income because doing so makes internal comparisons to our historical operating results more consistent. In addition, we believe
providing an EBITDA calculation is a more useful comparison of our operating results to the operating results of our peers.

Stock-based
compensation expense: We have excluded the effect of stock-based compensation expense from the non-GAAP adjusted EBITDA and non-GAAP
adjusted EBITDA per basic and diluted share calculations