Company: NSSC
Filing Date: 2025-03-14
Form Type: CORRESP
Source: 0001558370-25-003019
Chunk: 2

Company: NAPCO SECURITY TECHNOLOGIES, INC
Filing Date: 2025-03-14
Form: CORRESP
Chunk 2
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                  |          ​ | ​ | ​    |          ​ | ​ | ​                |          ​ | ​ | ​    |          ​ |
| Basic Weighted Average Shares Outstanding                              | ​ | ​                  | 36,538,000 | ​ | ​    | 36,829,000 | ​ | ​                | 36,706,000 | ​ | ​    | 36,743,000 |
| Effect of Dilutive Securities                                          | ​ | ​                  |    238,000 | ​ | ​    |    189,000 | ​ | ​                |    277,000 | ​ | ​    |    219,000 |
| Diluted Weighted Average Shares Outstanding (Denominator)              | ​ | ​                  | 36,776,000 | ​ | ​    | 37,018,000 | ​ | ​                | 36,983,000 | ​ | ​    | 36,962,000 |
| Net Income per Diluted Shares Outstanding (GAAP)                       | ​ | $                  |       0.28 | ​ | $    |       0.34 | ​ | $                |       0.59 | ​ | $    |       0.62 |
| Adjusted EBITDA per Diluted Shares Outstanding                         | ​ | $                  |       0.33 | ​ | $    |       0.41 | ​ | $                |       0.67 | ​ | $    |       0.76 |

2

| · | We note your Adjusted EBITDA computation includes nonrecurring legal expenses (income). Provide disclosure of the nature of these nonrecurring legal expenses (income) in your MD&A discussion in future filings. Further, as legal costs are considered to be normal, recurring, cash operating expenses, it is not clear how you determined these costs to be nonrecurring and eliminating them from non-GAAP performance measures is appropriate or complies with Question 100.01 of the C&DIs on Non-GAAP Financial Measures. Please more fully explain to us why you believe this adjustment is appropriate or tell us how you plan to revise your computation of Adjusted EBITDA in future filings to remove this adjustment. |

Response.The Company acknowledges the Staff’s comment and respectfully advises the Staff that it has considered the Staff’s Compliance and Disclosure Interpretations (“C&DIs”) on Non-GAAP Financial Measures, Question 100.01. The following table details the adjustments