NOTE 4 – EARNINGS PER SHARE

Basic earnings per share are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.

The components of basic and diluted earnings per share were as follows:

 SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE

As of September 30, 2026 and 2025, 50,000 stock options were outstanding. For the three months ended September 30, 2026, the dilutive effect of these options was 19,888 shares, calculated using the treasury stock method, and is included in the weighted average number of shares used to compute diluted earnings per share.

On September 30, 2026, the Company granted 40,000 restricted shares, of which 10,000 shares vested immediately, and 30,000 shares remained unvested as of September 30, 2026. The vested shares are included in the weighted average shares outstanding used to compute basic and diluted earnings per share from the date of grant. The 30,000 unvested shares are excluded from basic weighted average shares outstanding until they vest, and were excluded from the computation of diluted earnings per share for the three months ended September 30, 2026 because their effect would have been anti-dilutive.

For the three months ended September 30, 2025, the Company reported a net loss. Accordingly, all outstanding options were excluded from the computation of diluted loss per share because their effect would have been anti-dilutive, and basic and diluted loss per share were the same.

NETSOL TECHNOLOGIES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2026

(Unaudited)