Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 109

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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’s equity incentive plan. As of March 31, 2025,
the Company did not have a sufficient number of shares available for issuance under the current equity incentive plan to settle the equity
portion of the director’s compensation for the period. In accordance with ASC 718 – Compensation – Stock Compensation,
the Company has accounted for these awards as a liability and has recorded an accrued liability of $39,750 as of March 31, 2025. The
Company will reclassify the liability to equity upon the issuance of shares once additional shares are made available under a new equity
incentive plan, or will settle the liability in cash if shares are not issued.

During
the three and nine months ended March 31, 2025, the employees of the Company exercised 20,000 and 220,000 options of common stock with
an exercise price of $2.15 per share for cash proceeds of $473,000.

    Page 27

NETSOL
                                            TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

March
31, 2025

(Unaudited)

Stock
Grants

The
following table summarizes stock grants awarded as compensation:

 SUMMARY OF UNVESTED STOCK GRANTS AWARDED AS COMPENSATION

    #
                                            Number
                                                                               of
                                            shares  
    Weighted
                                            Average
                                                                               Grant
                                            Date
                                                                               Fair
                                            Value ($) 
  
    Unvested, June 30, 2024 
     -  
    $- 
  
    Granted 
     68,652  
    $2.62 
  
    Vested 
     (68,652) 
    $2.62 
  
    Unvested, March 31,
    2025 
     -  
    $- 

For
the three and nine months ended March 31, 2025, the Company recorded compensation expense of $39,750 and $79,500, respectively. For the
three and nine months ended March 31, 2024, the Company recorded compensation expense of $39,750 and $128,300, respectively. The weighted
average grant date fair value is determined by the Company’s closing stock price on the grant date.

NOTE
14 – INCENTIVE AND NON-STATUTORY STOCK OPTION PLAN

Common
stock purchase options consisted of the following:

 SCHEDULE OF COMMON STOCK PURCHASE OPTIONS

OPTIONS:

    #