SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, D.C. 20549





FORM 10-K/A





[x] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES


EXCHANGE ACT OF 1934





FOR THE FISCAL YEAR ENDED JUNE 30, 2010





or





[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE


SECURITIES EXCHANGE ACT OF 1934





Commission File Number 0-22773




NETSOL TECHNOLOGIES, INC.


(Name of small business issuer as specified in its charter)





NEVADA
95-4627685(State or other jurisdiction of

incorporation or organization)
(I.R.S. Employer

Identification Number)


23901 Calabasas Road, Suite 2072,


Calabasas, CA 91302


(Address of principal executive offices) (Zip code)





(818) 222-9195


(Issuer's telephone number including area code)





SECURITIES REGISTERED UNDER SECTION 12(b) OF THE EXCHANGE ACT:





COMMON STOCK, $.001 PAR VALUE


THE NASDAQ CAPITAL MARKET





Indicate by check mark if the registrant is a well-known seasoned issuer, as defined by Rule 405 of the Securities Act.


Yes [ ] No [x ]





Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes [ ] No [x ]





Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]





Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [x] No [ ]





Indicate by check mark if  disclosure of delinquent filers in response to Item 405 of Regulation S-K(§229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.





Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):





Large Accelerated Filer [ ]                                                                Accelerated Filer [ ]


Non-accelerated Filer    [  ]                                                                Smaller reporting company [x]


(Do not check if a smaller reporting company)





Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes [ ] No [x]





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The aggregate market value of the Common Stock held by non-affiliates of the registrant was approximately $24,096,750 based upon the closing price of the stock as reported on NASDAQ Capital Market ($0.73 per share) on June 30, 2010, the last business day of the registrant’s fiscal year.  As of September 6, 2010, there were 40,205,421 shares of common stock outstanding and no shares of its Preferred Stock issued and outstanding.





DOCUMENTS INCORPORATED BY REFERENCE





(None)





ANNUAL REPORT


PURSUANT TO SECTION 13 OR 15(d) OF THE


SECURITIES ACT OF 1934





2





This Amendment to the Annual Report filed on form 10-K for the year ended June 30, 2010 is being filed solely to amend Item 9, referred to herein as former Item 8 regarding Internal Controls.  Other than as amended hereby, there are no changes to the 10-K as amended and filed on March 10, 2011.








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ITEM 8A(T).  CONTROLS AND PROCEDURES




Evaluation of Disclosure Controls and Procedures




Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act, as of the end of the period covered by this Annual Report on Form 10-K.   Based upon that evaluation, the Chairman, Chief Financial Officer and Chief Executive Officer concluded that our disclosure controls and procedures were not effective.




Management’s Report on Internal Control over Financial Reporting




Our management has the responsibility to establish and maintain adequate internal controls over our financial reporting, as defined in Rule 13a-15(f) under the Securities and Exchange Act of 1934. Our internal controls are designed to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of our external financial statements in accordance with generally accepted accounting principles (GAAP).




Due to inherent limitations of any internal control system, management acknowledges that there are limitations as to the effectiveness of internal controls over financial reporting and therefore recognize that only reasonable assurance can be gained from any internal control system. Accordingly, our internal control system may not detect or prevent material misstatements in our financial statements and projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.




Under the supervision and participation of management, including the Chief Executive Officer and Chief Financial Officer, we have performed an assessment of the effectiveness of our internal controls over financial reporting as of June 30, 2010. This assessment was based on the criteria established in Internal Control-Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the results of our assessment, the Company has determined that as of June 30, 2010, there was a material weakness in the Company’s internal control over financial reporting. Specifically, while in the performance of this assessment, management identified that its accounting staff do not have sufficient technical accounting knowledge relating to accounting for complex U.S. GAAP matters.  In particular, although our CFO is a Chartered Accountant (CA) in Pakistan neither he, nor our controllers, holds a Certified Public Accounting (CPA) license in the United States.  While the CA certification is recognized in several key countries relative to the Company’s operations, including Pakistan, the United Kingdom, and other British Commonwealth countries, the Company has determined that a deficiency exists with respect to required financial reporting expertise in the United States. Based on this evaluation, management concluded that our internal control over financial reporting was not effective as of June 30, 2010.   Notwithstanding the existence of such material weakness in our internal controls over financial reporting, our management, including our Chief Executive Officer, believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.




Management is committed to remediating the material weakness as quickly as possible and we will continue to encourage our current accounting staff to both further their continuing education and to sit for the Certified Public Accountant exam in the United States. Additionally, and in recognition of immediate financial reporting needs, the Company intends to implement additional controls and procedures during the current fiscal year to continue to ensure timely and accurate financial reporting objectives. Such additional controls and procedures may include: The retention of a U.S. based CPA as Chief Financial Officer with U.S. GAAP experience and appropriate knowledge of internal controls over financial reporting, for purposes of appropriate oversight of the financial reporting process and continued training of the accounting staff; recruitment of additional personnel with relevant U.S. GAAP experience to enhance our financial reporting and internal control function; retention of the services of a consultant for advisory services with respect to SOX 404 compliance.




This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to rules of the SEC that permit us to provide only management’s report in this annual report.




Changes in Internal Control over Financial Reporting





There have been no changes in our internal controls over financial reporting during our fourth fiscal quarter ended June 30, 2010, that have materially affected, or are reasonable likely to materially affect, the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)).





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SIGNATURES





In accordance with Section 13 or 15 (d) of the Exchange Act, the Registrant caused this amended report to be signed on its behalf by the undersigned, thereunto duly authorized.





NetSol Technologies, Inc.





Date: July 28, 2011                                                                 BY: /S/ NAJEEB GHAURI





Najeeb Ghauri


Chief Executive Officer





Date: July 28, 2011                                                                 BY: /S/ Boo Ali Siddiqui





Boo Ali Siddiqui


Chief Financial Officer








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In accordance with the Exchange Act, this amended report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.





Date: July 28, 2011                                                                 BY: /S/ NAJEEB U. GHAURI


Najeeb U. Ghauri


Chief Executive Officer


Director, Chairman





Date:  July 28, 2011                                                                 BY: /S/ SALIM GHAURI


Salim Ghauri


President, APAC


Director





Date:  July 28, 2011                                                                 BY: /S/ NAEEM GHAURI


Naeem Ghauri


President, EMEA


Director





Date:  July 28, 2011                                                                 BY: /S/ EUGEN BECKERT


Eugen Beckert


Director





Date:  July 28, 2011                                                                 BY: /S/ SHAHID JAVED BURKI


Shahid Javed Burki


Director





Date:  July 28, 2011                                                                 BY:/S/ MARK CATON


Mark Caton


Director





Date:  July 28, 2011                                                                 BY:/S/ ALEXANDER SHAKOW


Alexander Shakow


Director





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