Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 131

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 131
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 2024, for an increase
of $3,281,499 and on a constant currency basis an increase of $3,452,110. As a percentage of sales, it increased from 42.0% to 44.0%.
The increase in operating expenses was primarily due to increases in selling expenses, general and administrative expenses and research
and development costs.

Selling
and marketing expenses increased by $2,742,951 and on a constant currency basis increased by $2,603,499. The increase is mainly due to
increases in salaries of approximately $2,200,000, travel of approximately $257,000 and other selling expenses of approximately $288,000.

General
and administrative expenses were $17,501,610 for the year ended June 30, 2025, compared to $16,836,339 at June 30, 2024, or an increase
of $665,271, and on a constant currency basis an increase of $992,703. During the year ended June 30, 2025, salaries increased by approximately
$687,000 or increased by approximately $574,000 on a constant currency basis, due to increases in salaries including bonuses, medical
costs and subsidiary options granted to staff in NetSol PK. The provision for doubtful accounts increased by approximately $496,000 and
on a constant currency basis increased by approximately $477,000. Other general and administrative costs decreased by approximately $518,000
and on a constant currency basis a decrease of approximately $58,000.

Research
and development costs decreased by approximately $127,000 and on a constant currency basis a decrease of approximately $144,000.

Income/Loss
from Operations

Income
from operations was $3,501,718 for the year ended June 30, 2025, compared to $3,493,555 for the year ended June 30, 2024. This represents
a slight increase of $8,163 with a decrease of $274,727 on a constant currency basis for the year ended June 30, 2025, compared with
the year ended June 30, 2024. As a percentage of sales, income from operations was 5.3% for the year ended June 30, 2025, compared to
5.7% for the year ended June 30, 2024.

Other
Income and Expense

Other
income was $2,545,539 for