Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 173

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 173
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. The increase is due to annual salary raises. As a percentage
of sales, salaries and consultant expense increased from 39.3% for the nine months ended March 31, 2024 to 41.3% for the nine months
ended March 31, 2025.

Travel
expenses were $1,624,008 for the nine months ended March 31, 2025 compared to $2,207,999 for the nine months ended March 31, 2024 for
a decrease of $583,991 with a decrease in constant currency of $606,561. As a percentage of sales, travel expense decreased from 4.9%
for the nine months ended March 31, 2024 to 3.4% for the nine months ended March 31, 2025.

Depreciation
and amortization expense decreased to $706,876 compared to $907,483 for the nine months ended March 31, 2024 or a decrease of $200,607
and on a constant currency basis a decrease of $213,640.

Other
costs increased to $3,431,907 for the nine months ended March 31, 2025 compared to $3,351,167 for the nine months ended March 31, 2024
or an increase of $80,740 and on a constant currency basis  an increase of $26,183.

Operating
Expenses

Operating
expenses were $21,919,936 for the nine months ended March 31, 2025 compared to $18,117,210, for the nine months ended March 31, 2024
for an increase of $3,802,726 and on a constant currency basis an increase of $3,473,618. As a percentage of sales, it increased from
40.3% to 46.0%. The increase in operating expenses was primarily due to increases in selling and marketing expenses, salaries and wages,
provision for doubtful accounts, and other general and administrative expenses.

Selling
expenses were $7,380,679 for the nine months ended March 31, 2025 compared to $5,323,400, for the nine months ended March 31, 2024 for
an increase of $2,057,279 and on a constant currency basis an increase of $1,952,658. The increase is mainly due to increases is salaries
and consultants of approximately $1,447,000,