Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 104

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 104
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 net income or loss 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. 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 47

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 and six months ended December 31, 2024 and 2023 are as follows: 

    For the Three Months Ended December 31,  
    For the Six Months Ended December 31, 

    2024  
    2023  
    2024  
    2023 

    Net Income (loss) attributable to NetSol 
    $(1,147,042) 
    $408,316  
    $(1,076,247) 
    $439,206 
  
    Non-controlling interest 
     (39,164) 
     574,499  
     107,750  
     834,672 
  
    Income taxes 
     331,614  
     150,053  
     561,431  
     271,948 
  
    Depreciation and amortization 
     372,585  
     429,163  
     738,582  
     959,949 
  
    Interest expense 
     236,386  
     290,322  
     494,605