NETSOL Technologies, Inc. (NASDAQ:
NTWK), a global business services
and enterprise application solutions provider, reported results for
the fiscal third quarter ended March 31, 2019.
Third Quarter and Recent Operational
Highlights
- Updates related to previously announced 12-country, $110
million contract with German auto manufacturing giant.
- Successfully implemented the full suite of NFS Ascent™ modules
in China.
- Successfully implemented NFS Ascent Wholesale Finance System in
Japan.
- Made continued progress with respect to additional NFS Ascent
implementations in Singapore, Malaysia, Hong Kong, India and
Thailand.
- Made significant strides in the ongoing implementation process
for the deployment of NFS Ascent Retail and Wholesale platforms
with European tier-one global auto captive in China related to the
$30 million contract signed in September 2018.
- Continued implementation of NFS Ascent Retail platform at
captive auto leasing company of a major US based auto manufacturer
in China.
- Officially launched OTOZ Mobility Innovation Lab, which has
been designed to enhance reach of NETSOL Ascent platform into
car-sharing opportunities with new and existing auto captive
finance customers.
- Announced strategic investment and partnership with Drivemate,
the top car-sharing, peer-to-peer car rental service in Thailand,
to implement new technology in exchange for future minority
interest in the company, providing for a low-risk testing
environment for OTOZ with a built-in customer.
- Continued to build out capabilities in intelligent technologies
such as artificial intelligence, machine learning, blockchain, IoT
and cloud native architectures to help future proof core business
and innovate around new opportunities, specifically car sharing and
peer-to-peer sharing as well as subscription and data driven
business models.
Fiscal Third Quarter 2019 Financial
ResultsTotal net revenues for the third quarter of fiscal
2019 were $17.1 million, compared with $17.0 million in the prior
year period. The increase in total net revenues was primarily due
to an increase in total services revenues of $256,000, which was
offset by a decrease in total license fees of $113,000 and total
maintenances fees of $61,000.
- Total license fees were $2.5 million, compared with $2.6
million in the prior year period.
- Total maintenance fees were $3.7 million, compared with $3.8
million in the prior year period.
- Total services revenues were $10.9 million, compared with $10.6
million in the prior year period.
Gross profit for the third quarter of fiscal 2019 was $8.6
million (or 50.0% of total net revenues), compared to $9.2 million
(or 53.9% of total net revenues) in the third quarter of fiscal
2018. The decrease in gross profit as a percentage of net revenues
was due to an increase in the cost of revenues of 719,000. The
increase in cost of revenue was predominantly driven by increases
in travel and other expenses associated with increased
implementation needs for the significant new wins recorded in
previous quarters, which are expected to be invoiced to clients and
subsequently reimbursed. The increase in cost of revenues was
offset by decreases in salaries and consultants’ costs, decreases
in depreciation and amortization costs as well as an increase in
total net revenues of $83,000.
Operating expenses for the third quarter of fiscal 2019
increased to $6.5 million (or 37.7% of total net revenues) from
$6.4 million (or 37.8% of total net revenues) for the third quarter
of fiscal 2018. The increase in operating expenses was primarily
due to increases in research and development expenses and
depreciation which were offset by decreases in selling and
marketing expenses, salaries and wages, professional services, and
general and administrative expenses.
Net income attributable to NETSOL for the third quarter of
fiscal 2019 totaled $1.3 million or $0.11 per diluted share, a
decrease from net income of $2.9 million or $0.26 per diluted share
in the third quarter of fiscal 2018. The decrease in net
income was primarily due to a decrease in foreign currency exchange
transactions to $47,000 in the third quarter of fiscal 2019
compared to $2.6 million for the third quarter of fiscal 2018.
Non-GAAP adjusted EBITDA for the third quarter of fiscal 2019
totaled $2.2 million or $0.19 per diluted share, compared to $4.3
million or $0.39 per diluted share in the third quarter of fiscal
2018 (see note regarding “Use of Non-GAAP Financial Measures,”
below for further discussion of this non-GAAP measure).
At March 31, 2019, cash and cash equivalents were $17.0 million,
an increase from $12.7 million at the end of the prior year
quarter.
Management Commentary“In the fiscal third
quarter, we continued to execute in all areas of our core business,
enabling us to achieve certain major operational milestones that
positively impacted our financial and operational performance,”
said company Co-Founder, Chairman and Chief Executive Officer
Najeeb Ghauri. “More specifically, our successful ‘Go Live’ in
China this past March represented the greatest single deployment of
our Ascent platform in the largest leasing market in the Asia
Pacific region. We’ve now generated profitable results from
operations for six consecutive quarters and have continued to
sequentially improve our topline throughout the course of the
fiscal 2019. In the near term, we remain on track to achieve our
previously stated goal of double-digit revenue growth for the year.
Going forward, we’re continuing to position ourselves effectively
for the long term through new initiatives like our recently
launched OTOZ Mobility Innovation Lab, which will allow us to
expand reach of our existing platform into new growth
opportunities.”
Sales Outlook“We are continuing to generate a
healthy mix of business opportunities, through both implementation
execution and up-selling to our current client base as well as by
expanding on our already-robust international pipeline,” added
President and Head of Sales Naeem Ghauri. “NFS Ascent continues to
be the main growth driver for our core operations, and we’re seeing
great interest in upgrades from existing clients as well as RFPs
from potential new clients.
“With the recent launch of our OTOZ Innovation Lab, there has
been an incredibly strong response from the market, particularly
around the platform’s capabilities in blockchain and artificial
intelligence. As mobility becomes redefined, our industry is
entering a period of significant evolution and also disruption.
New, emerging models for car and ride sharing, where these
technologies of the future should play a central role, will help
define the leading solutions going forward. With Ascent and OTOZ
together, NETSOL has established two major platforms that have the
ability to address and leverage these new models for many years to
come.”
Conference CallNETSOL Technologies management
will hold a conference call today (May 14, 2019) at 11:00 a.m.
Eastern time (8:00 a.m. Pacific time) to discuss these financial
results. A question and answer session will follow management's
presentation.
U.S. dial-in: 1-877-407-0789International dial-in:
1-201-689-8562
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact Gateway Investor Relations at
1-949-574-3860.
The conference call will be broadcasted live and available for
replay here and via the Investor Relations section of NETSOL’s
website.
A replay of the conference call will be available after 2:00
p.m. Eastern time on the same day through May 28, 2019.
Toll-free replay number: 1-844-512-2921International replay
number: 1-412-317-6671Replay ID: 13689882
About NETSOL TechnologiesNETSOL Technologies,
Inc. (NASDAQ: NTWK) is a worldwide provider of IT and enterprise
software solutions primarily serving the global Leasing and Finance
industry. The company’s suite of applications is backed by 40 years
of domain expertise and supported by a committed team of
approximately 1,350 professionals placed in eight strategically
located support and delivery centers throughout the world. NFS,
LeasePak, LeaseSoft or NFS Ascent – help companies transform their
Finance and Leasing operations, providing a fully automated
asset-based finance solution covering the complete leasing and
finance lifecycle.
Forward-Looking StatementsCertain statements in
this press release are forward-looking in nature, including, but
not limited to, expected net revenue and the demand for and sales
lifecycle of NFS Ascent, and accordingly, are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those projected. The words “expects,”
“anticipates,” variations of such words, and similar expressions,
identify forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, but their absence
does not mean that the statement is not forward-looking. These
statements are not guarantees of future performance and are subject
to certain risks, uncertainties, and assumptions that are difficult
to predict. Factors that could affect the Company's actual results
include the progress and costs of the development of products and
services and the timing of the market acceptance. The subject
Companies expressly disclaim any obligation or undertaking to
update or revise any forward-looking statement contained herein to
reflect any change in the company's expectations with regard
thereto or any change in events, conditions or circumstances upon
which any statement is based.
Use of Non-GAAP Financial MeasuresThe
reconciliation of Adjusted EBITDA to net income, the most
comparable financial measure based upon GAAP, as well as a further
explanation of adjusted EBITDA, is included in the financial tables
in Schedule 4 of this press release.
Investor Relations Contact:
Matt Glover and Tom ColtonGateway Investor
Relations949-574-3860investors@netsoltech.com
|
|
NETSOL Technologies, Inc. and Subsidiaries |
|
|
Schedule 1: Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
As of March 31, |
|
As of June 30, |
|
ASSETS |
|
2019 |
|
|
|
2018 |
|
Current
assets: |
|
|
|
|
Cash and cash
equivalents |
$ |
17,014,590 |
|
|
$ |
22,088,853 |
|
|
Accounts
receivable, net of allowance of $373,329 and
$610,061 |
|
15,971,676 |
|
|
|
12,775,461 |
|
|
Accounts
receivable, net - related party |
|
3,012,133 |
|
|
|
3,374,272 |
|
|
Revenues in excess
of billings |
|
13,381,205 |
|
|
|
14,285,778 |
|
|
Revenues in excess
of billings - related party |
|
61,822 |
|
|
|
- |
|
|
Convertible note
receivable - related party |
|
3,250,000 |
|
|
|
2,123,500 |
|
|
Other current
assets |
|
3,593,057 |
|
|
|
2,703,032 |
|
|
|
Total current assets |
|
56,284,483 |
|
|
|
57,350,896 |
|
Revenues in excess
of billings, net - long term |
|
- |
|
|
|
1,206,669 |
|
Property and
equipment, net |
|
14,374,262 |
|
|
|
16,165,491 |
|
Long term
investment |
|
2,501,299 |
|
|
|
3,217,162 |
|
Other assets |
|
23,994 |
|
|
|
70,299 |
|
Intangible assets,
net |
|
9,042,726 |
|
|
|
12,247,196 |
|
Goodwill |
|
9,516,568 |
|
|
|
9,516,568 |
|
|
|
Total
assets |
$ |
91,743,332 |
|
|
$ |
99,774,281 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable
and accrued expenses |
$ |
6,881,435 |
|
|
$ |
7,873,809 |
|
|
Current portion of
loans and obligations under capitalized leases |
|
8,111,332 |
|
|
|
8,595,919 |
|
|
Unearned
revenues |
|
6,241,741 |
|
|
|
5,949,581 |
|
|
Common stock to be
issued |
|
88,324 |
|
|
|
88,324 |
|
|
|
Total current liabilities |
|
21,322,832 |
|
|
|
22,507,633 |
|
Loans and
obligations under capitalized leases; less current maturities |
|
716,563 |
|
|
|
330,596 |
|
|
|
Total
liabilities |
|
22,039,395 |
|
|
|
22,838,229 |
|
Commitments and contingencies |
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock,
$.01 par value; 500,000 shares authorized; |
|
- |
|
|
|
- |
|
|
Common stock, $.01
par value; 14,500,000 shares authorized; |
|
|
|
|
|
11,879,056 shares
issued and 11,673,203 outstanding as of March 31, 2019
and |
|
|
|
|
11,708,469 shares issued and
11,502,616 outstanding as of June 30, 2018 |
|
118,791 |
|
|
|
117,085 |
|
|
Additional
paid-in-capital |
|
127,551,606 |
|
|
|
126,479,147 |
|
|
Treasury stock (At
cost, 205,853 shares and 205,853 shares |
|
|
|
|
as of March
31, 2019 and June 30, 2018, respectively) |
|
(1,205,024 |
) |
|
|
(1,205,024 |
) |
|
Accumulated
deficit |
|
(38,704,519 |
) |
|
|
(37,994,502 |
) |
|
Stock subscription
receivable |
|
(221,000 |
) |
|
|
(221,000 |
) |
|
Other
comprehensive loss |
|
(28,474,832 |
) |
|
|
(24,386,071 |
) |
|
|
Total NetSol stockholders'
equity |
|
59,065,022 |
|
|
|
62,789,635 |
|
|
Non-controlling
interest |
|
10,638,915 |
|
|
|
14,146,417 |
|
|
|
Total stockholders'
equity |
|
69,703,937 |
|
|
|
76,936,052 |
|
|
|
Total liabilities and
stockholders' equity |
$ |
91,743,332 |
|
|
$ |
99,774,281 |
|
|
|
|
|
|
|
NETSOL Technologies, Inc. and Subsidiaries |
Schedule 2: Consolidated Statement of
Operations |
|
|
|
|
|
|
|
|
|
For the Three Months |
|
For the Nine Months |
|
|
|
Ended March 31, |
|
Ended March 31, |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Net
Revenues: |
|
|
|
|
|
|
|
|
License fees |
$ |
2,536,320 |
|
|
$ |
2,648,870 |
|
|
$ |
13,310,002 |
|
|
$ |
3,210,868 |
|
|
Maintenance
fees |
|
3,562,412 |
|
|
|
3,659,998 |
|
|
|
10,735,432 |
|
|
|
10,702,171 |
|
|
Services |
|
10,519,219 |
|
|
|
9,345,210 |
|
|
|
25,175,187 |
|
|
|
25,450,138 |
|
|
License fees -
related party |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
261,513 |
|
|
Maintenance fees -
related party |
|
142,344 |
|
|
|
105,325 |
|
|
|
370,723 |
|
|
|
309,539 |
|
|
Services - related
party |
|
366,760 |
|
|
|
1,284,417 |
|
|
|
934,883 |
|
|
|
4,374,802 |
|
|
|
Total net
revenues |
|
17,127,055 |
|
|
|
17,043,820 |
|
|
|
50,526,227 |
|
|
|
44,309,031 |
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues: |
|
|
|
|
|
|
|
|
Salaries and
consultants |
|
4,833,611 |
|
|
|
5,418,067 |
|
|
|
14,351,227 |
|
|
|
16,244,319 |
|
|
Travel |
|
1,793,964 |
|
|
|
425,060 |
|
|
|
4,652,143 |
|
|
|
1,226,073 |
|
|
Depreciation
and amortization |
|
874,654 |
|
|
|
1,127,077 |
|
|
|
2,692,306 |
|
|
|
3,468,293 |
|
|
Other |
|
1,067,506 |
|
|
|
880,897 |
|
|
|
3,176,602 |
|
|
|
2,677,465 |
|
|
|
Total cost of revenues |
|
8,569,735 |
|
|
|
7,851,101 |
|
|
|
24,872,278 |
|
|
|
23,616,150 |
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
8,557,320 |
|
|
|
9,192,719 |
|
|
|
25,653,949 |
|
|
|
20,692,881 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Selling and
marketing |
|
1,864,990 |
|
|
|
1,962,402 |
|
|
|
5,614,619 |
|
|
|
5,605,838 |
|
|
Depreciation and
amortization |
|
252,442 |
|
|
|
231,308 |
|
|
|
658,453 |
|
|
|
699,966 |
|
|
General and
administrative |
|
3,833,209 |
|
|
|
4,048,271 |
|
|
|
12,241,988 |
|
|
|
11,862,535 |
|
|
Research and
development cost |
|
513,770 |
|
|
|
197,643 |
|
|
|
1,256,577 |
|
|
|
572,619 |
|
|
|
Total operating expenses |
|
6,464,411 |
|
|
|
6,439,624 |
|
|
|
19,771,637 |
|
|
|
18,740,958 |
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from operations |
|
2,092,909 |
|
|
|
2,753,095 |
|
|
|
5,882,312 |
|
|
|
1,951,923 |
|
|
|
|
|
|
|
|
|
|
|
Other
income and (expenses) |
|
|
|
|
|
|
|
|
Gain (loss) on
sale of assets |
|
16,380 |
|
|
|
40,537 |
|
|
|
65,170 |
|
|
|
24,468 |
|
|
Interest
expense |
|
(70,447 |
) |
|
|
(102,522 |
) |
|
|
(233,685 |
) |
|
|
(330,268 |
) |
|
Interest
income |
|
201,084 |
|
|
|
142,356 |
|
|
|
680,469 |
|
|
|
394,837 |
|
|
Gain on foreign
currency exchange transactions |
|
47,218 |
|
|
|
2,550,394 |
|
|
|
2,594,885 |
|
|
|
5,304,723 |
|
|
Share of net loss
from equity investment |
|
(245,389 |
) |
|
|
(263,678 |
) |
|
|
(843,373 |
) |
|
|
(534,576 |
) |
|
Other
income |
|
3,116 |
|
|
|
314 |
|
|
|
12,998 |
|
|
|
15,924 |
|
|
|
Total other income
(expenses) |
|
(48,038 |
) |
|
|
2,367,401 |
|
|
|
2,276,464 |
|
|
|
4,875,108 |
|
|
|
|
|
|
|
|
|
|
|
Net income
before income
taxes |
|
2,044,871 |
|
|
|
5,120,496 |
|
|
|
8,158,776 |
|
|
|
6,827,031 |
|
Income tax
provision |
|
(275,476 |
) |
|
|
(261,182 |
) |
|
|
(777,262 |
) |
|
|
(486,980 |
) |
Net
income |
|
1,769,395 |
|
|
|
4,859,314 |
|
|
|
7,381,514 |
|
|
|
6,340,051 |
|
|
Non-controlling interest |
|
(501,835 |
) |
|
|
(1,994,869 |
) |
|
|
(2,295,736 |
) |
|
|
(3,210,683 |
) |
Net income
attributable to NetSol |
$ |
1,267,560 |
|
|
$ |
2,864,445 |
|
|
$ |
5,085,778 |
|
|
$ |
3,129,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share: |
|
|
|
|
|
|
|
|
Net income (loss)
per common share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.11 |
|
|
$ |
0.26 |
|
|
$ |
0.44 |
|
|
$ |
0.28 |
|
|
|
Diluted |
$ |
0.11 |
|
|
$ |
0.25 |
|
|
$ |
0.44 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
11,656,098 |
|
|
|
11,190,048 |
|
|
|
11,580,066 |
|
|
|
11,118,529 |
|
|
Diluted |
|
11,691,342 |
|
|
|
11,268,842 |
|
|
|
11,615,310 |
|
|
|
11,152,365 |
|
|
|
|
|
|
|
|
|
|
|
NETSOL Technologies, Inc. and Subsidiaries |
Schedule 3: Consolidated Statement of Cash
Flows |
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months |
|
|
|
|
|
Ended March 31, |
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
Cash flows from operating
activities: |
|
|
|
|
|
Net
income |
$ |
7,381,514 |
|
|
$ |
6,340,051 |
|
|
|
Adjustments
to reconcile net income |
|
|
|
|
|
to
net cash provided by (used in) operating activities: |
|
|
|
|
|
Depreciation
and amortization |
|
3,350,759 |
|
|
|
4,168,259 |
|
|
|
Share of net
loss from investment under equity method |
|
843,373 |
|
|
|
534,576 |
|
|
|
Gain on sale
of assets |
|
(65,170 |
) |
|
|
(24,468 |
) |
|
|
Stock based
compensation |
|
980,682 |
|
|
|
1,281,763 |
|
|
|
Fair market
value of stock options |
|
43,612 |
|
|
|
- |
|
|
|
Changes in operating assets and
liabilities: |
|
|
|
|
|
Accounts receivable |
|
(4,249,540 |
) |
|
|
(17,848,921 |
) |
|
|
Accounts receivable - related party |
|
(461,435 |
) |
|
|
(2,634,063 |
) |
|
|
Revenues in excess of billing |
|
(6,862,451 |
) |
|
|
5,904,161 |
|
|
|
Revenues in excess of billing - related party |
|
(97,359 |
) |
|
|
(85,743 |
) |
|
|
Other current assets |
|
(1,189,909 |
) |
|
|
(796,126 |
) |
|
|
Accounts payable and accrued expenses |
|
(540,615 |
) |
|
|
1,139,509 |
|
|
|
Unearned revenue |
|
611,157 |
|
|
|
4,273,007 |
|
|
|
Net cash provided by (used in)
operating activities |
|
(255,382 |
) |
|
|
2,252,005 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
Purchases of
property and equipment |
|
(2,590,302 |
) |
|
|
(1,107,732 |
) |
|
|
Sales of
property and equipment |
|
1,005,214 |
|
|
|
348,762 |
|
|
|
Convertible
note receivable - related party |
|
(1,126,500 |
) |
|
|
(550,000 |
) |
|
|
Investment
in WRLD3D |
|
- |
|
|
|
(50,000 |
) |
|
|
Purchase of
subsidiary shares from open market |
|
- |
|
|
|
(33,987 |
) |
|
|
Net cash used in investing
activities |
|
(2,711,588 |
) |
|
|
(1,392,957 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
Proceeds
from the exercise of stock options and warrants |
|
85,000 |
|
|
|
215,311 |
|
|
|
Proceeds from exercise
of subsidiary options |
|
|
|
2,650 |
|
|
|
10,349 |
|
|
|
Restricted
cash |
|
- |
|
|
|
90,000 |
|
|
|
Purchase of
treasury stock |
|
- |
|
|
|
(750,714 |
) |
|
|
Dividend
paid by subsidiary to non-controlling interest |
|
(566,465 |
) |
|
|
(417,853 |
) |
|
|
Proceeds
from bank loans |
|
1,337,092 |
|
|
|
696,936 |
|
|
|
Payments on
capital lease obligations and loans - net |
|
(298,610 |
) |
|
|
(961,901 |
) |
|
|
Net cash provided by (used in)
financing activities |
|
559,667 |
|
|
|
(1,117,872 |
) |
|
Effect of exchange rate
changes |
|
(2,666,960 |
) |
|
|
(1,202,147 |
) |
|
Net decrease in cash and cash
equivalents |
|
(5,074,263 |
) |
|
|
(1,460,971 |
) |
|
Cash and
cash equivalents at beginning of the period |
|
22,088,853 |
|
|
|
14,172,954 |
|
|
Cash and cash equivalents at end of
period |
$ |
17,014,590 |
|
|
$ |
12,711,983 |
|
|
|
|
|
|
|
|
|
|
NETSOL Technologies, Inc. and Subsidiaries |
Schedule 4: Reconciliation to GAAP |
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
Nine Months |
|
Nine Months |
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|
March 31, 2019 |
|
March 31, 2018 |
|
March 31, 2019 |
|
March 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) before
preferred dividend, per GAAP |
$ |
1,267,560 |
|
|
$ |
2,864,445 |
|
|
$ |
5,085,778 |
|
|
$ |
3,129,368 |
|
|
Non-controlling interest |
|
501,835 |
|
|
|
1,994,869 |
|
|
|
2,295,736 |
|
|
|
3,210,683 |
|
|
Income taxes |
|
275,476 |
|
|
|
261,182 |
|
|
|
777,262 |
|
|
|
486,980 |
|
|
Depreciation and amortization |
|
1,127,096 |
|
|
|
1,358,385 |
|
|
|
3,350,759 |
|
|
|
4,168,259 |
|
|
Interest expense |
|
70,447 |
|
|
|
102,522 |
|
|
|
233,685 |
|
|
|
330,268 |
|
|
Interest (income) |
|
(201,084 |
) |
|
|
(142,356 |
) |
|
|
(680,469 |
) |
|
|
(394,837 |
) |
|
EBITDA |
$ |
3,041,330 |
|
|
$ |
6,439,047 |
|
|
$ |
11,062,751 |
|
|
$ |
10,930,721 |
|
|
Add back: |
|
|
|
|
|
|
|
|
Non-cash stock-based compensation |
|
154,551 |
|
|
|
448,233 |
|
- |
|
1,024,294 |
|
|
|
1,281,763 |
|
|
Adjusted EBITDA,
gross |
$ |
3,195,881 |
|
|
$ |
6,887,280 |
|
|
$ |
12,087,045 |
|
|
$ |
12,212,484 |
|
|
Less non-controlling
interest (a) |
|
(959,955 |
) |
|
|
(2,540,702 |
) |
|
|
(3,600,485 |
) |
|
|
(4,804,869 |
) |
|
Adjusted EBITDA,
net |
$ |
2,235,926 |
|
|
$ |
4,346,578 |
|
|
$ |
8,486,560 |
|
|
$ |
7,407,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average number
of shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
11,656,098 |
|
|
|
11,190,048 |
|
|
|
11,580,066 |
|
|
|
11,118,529 |
|
|
Diluted |
|
11,691,342 |
|
|
|
11,268,842 |
|
|
|
11,615,310 |
|
|
|
11,152,365 |
|
|
|
|
|
|
|
|
|
|
|
Basic adjusted
EBITDA |
$ |
0.19 |
|
|
$ |
0.39 |
|
|
$ |
0.73 |
|
|
$ |
0.67 |
|
|
Diluted adjusted
EBITDA |
$ |
0.19 |
|
|
$ |
0.39 |
|
|
$ |
0.73 |
|
|
$ |
0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)The reconciliation of
adjusted EBITDA of non-controlling interest |
|
|
|
|
|
|
|
|
to net income attributable to
non-controlling interest is as follows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to
non-controlling interest |
$ |
501,835 |
|
|
$ |
1,994,869 |
|
|
$ |
2,295,736 |
|
|
$ |
3,210,683 |
|
|
Income Taxes |
|
109,957 |
|
|
|
65,798 |
|
|
|
251,321 |
|
|
|
106,221 |
|
|
Depreciation and amortization |
|
360,071 |
|
|
|
449,828 |
|
|
|
1,064,203 |
|
|
|
1,382,148 |
|
|
Interest expense |
|
22,173 |
|
|
|
31,865 |
|
|
|
75,082 |
|
|
|
105,400 |
|
|
Interest (income) |
|
(43,905 |
) |
|
|
(43,702 |
) |
|
|
(165,020 |
) |
|
|
(125,777 |
) |
|
EBITDA |
$ |
950,131 |
|
|
$ |
2,498,658 |
|
|
$ |
3,521,322 |
|
|
$ |
4,678,675 |
|
|
Add back: |
|
|
|
|
|
|
|
|
Non-cash stock-based compensation |
|
9,824 |
|
|
|
42,044 |
|
|
|
79,163 |
|
|
|
126,194 |
|
|
Adjusted EBITDA of
non-controlling interest |
$ |
959,955 |
|
|
$ |
2,540,702 |
|
|
$ |
3,600,485 |
|
|
$ |
4,804,869 |
|
|
|
|
|
|
|
|
|
|
|
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