Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 977

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 4
Chunk 977
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    $2.94 

OPTIONS

During
the year ended June 30, 2025, the Company granted 50,000
options to a consultant with an exercise price of $2.94
per share, a 2 two-year
expiration date, and immediate vesting. Using the Black-Scholes method to value the options, the Company recorded $25,149
in compensation expense for these options in the accompanying consolidated financial statements.

During
the year ended June 30, 2024, the Company granted 250,000
options to officers and employees with an exercise price of $2.15
per share, a 1 one-year expiration date, and immediate vesting. Using the Black-Scholes method to value the options, the Company
recorded $101,424
in compensation expense for these options in the accompanying consolidated financial statements. The fair market value was
calculated using the Black-Scholes option pricing model.

The
following table includes the assumptions used in the calculations:

 SCHEDULE
OF SHARE OPTION ASSUMPTIONS

    June
    30, 2025  
    June
    30, 2024 
  
    Risk-free
    interest rate 
     3.99% 
     5.24%
  
    Expected
    life 
     1
                                            year  
     6
                                            months 
  
    Expected
    volatility 
     38.8% 
     63.60%
  
    Expected
    dividend 
     0% 
     0%

In
determining the fair value of share options, the Company utilized the simplified method to estimate the expected term
for certain share option grants. The simplified method was applied due to the Company’s lack of sufficient historical data on employee
exercise behavior, which would otherwise be necessary to develop a more precise estimate of the expected term. The simplified method
estimates the expected term as the midpoint between the vesting period and the contractual term of the options.

In
determining the fair value of share options, the Company utilized historical volatility as the basis for its expected volatility
assumption. Historical volatility was calculated using the daily closing prices of the Company’s common stock over a period commensurate
with the expected term of the share options. The Company determined that historical volatility was an appropriate measure of future expectations,
as it reflects the stock’s past performance and market conditions. No significant