STOCKHOLDERS’ EQUITY |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| STOCKHOLDERS’ EQUITY | NOTE 16 - STOCKHOLDERS’ EQUITY
During the three months ended September 30, 2026, the Company issued shares of common stock to the independent Board of Directors as part of their board compensation. The grant-date fair value was $48,000 and was recorded as compensation expense in the accompanying consolidated financial statements.
During the three months ended September 30, 2026, the Company issued shares of common stock to an employee as compensation for services. The related expense of $231,000, based on the grant-date fair value, was recognized in fiscal year 2026.
On September 30, 2026, the Company’s Board of Directors granted shares of common stock to the Company’s Chief Financial Officer under the 2025 Equity Incentive Plan. Of these shares, vested immediately on the grant date. The remaining shares vest in three tranches of shares each, on the earlier of (i) the closing price of the Company’s common stock equaling or exceeding $, $ and $ per share, respectively, for 20 trading days within any 30 consecutive trading-day period, or (ii) July 1, 2027, July 1, 2028 and July 1, 2029, respectively, subject to continued employment through the vesting date.
NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2026 (Unaudited)
The grant-date fair value of the award was $, based on the $ closing price of the Company’s common stock on the grant date. Because the stock-price targets can only accelerate vesting, the market conditions had no measurable effect on fair value, as confirmed by a Monte Carlo simulation. Compensation cost for each tranche is recognized over the shorter of its explicit service period and its derived service period, which was estimated using a Monte Carlo simulation. If a stock-price target is achieved before the end of a tranche’s requisite service period, any remaining unrecognized compensation cost for that tranche is recognized at that time. The Company accounts for forfeitures as they occur.
Stock Grants
The following table summarizes stock grants awarded as compensation:
For the three months ended September 30, 2026 and 2025, the Company recognized stock-based compensation expense of $ and $, respectively. For the three months ended September 30, 2026, this included $54,900 related to the award granted to the Company’s Chief Financial Officer and $48,000 related to shares issued to members of the Board of Directors as compensation for their services. The grant-date fair value of share awards is based on the closing price of the Company’s common stock on the grant date. As of September 30, 2026, unrecognized compensation cost related to nonvested awards was $, all of which relates to the award granted to the Chief Financial Officer. This cost is expected to be recognized over a weighted-average period of approximately year.
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