Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 103

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 103
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 in net loss of NetSol PK
and NetSol Innovation.

Net
income (loss) attributable to NetSol

The net
loss was $1,076,247 for the six months ended December 31, 2024 compared to net income of $439,206 for the six months ended December 31,
2023. This is an increase in loss of $1,515,453 with an increase of $1,316,457 on a constant currency basis, compared to the prior year.
For the six months ended December 31, 2024, net loss per share was $0.09 for basic and diluted shares compared to net income per share
of $0.04 for basic and diluted shares for the six months ended December 31, 2023.

Page 46

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 or loss 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