Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 72

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 72
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 31, 2025, salaries increased by approximately $577,390 and increased $493,440 on a constant currency basis, bad debt expense increased
$1,052,776 and $1,046,603 on a constant currency basis, and other general and administrative expenses increased approximately $182,287
or increased by $68,558 on a constant currency basis.

Research
and development cost was $998,406 for the nine months ended March 31, 2025 compared to $1,065,412, for the nine months ended March 31,
2024 for a decrease of $67,006 and on a constant currency basis, a decrease of $87,641.

Income/Loss
from Operations

Income
from operations was $306,290 for the nine months ended March 31, 2025 compared to $2,695,364 for the nine months ended March 31, 2024.
This represents a decrease of $2,389,074 with a decrease of $1,957,068 on a constant currency basis for the nine months ended March 31,
2025 compared with the nine months ended March 31, 2024. As a percentage of sales, income from operations was 0.6% for the nine months
ended March 31, 2025 compared to 6.0% for the nine months ended March 31, 2024.

Other
Income and Expense

Other
income was $1,272,408 for the nine months ended March 31, 2025 compared to other expense of $687,099 for the nine months ended March
31, 2024. This represents an increase in other income of $1,959,507 with an increase of $1,924,932 on a constant currency basis. The
increase is primarily due to the foreign currency exchange transactions and interest income. The majority of the contracts with
NetSol PK are either in U.S. dollars or Euros; therefore, the currency fluctuations will lead to foreign currency exchange gains or
losses depending on the value of the PKR compared to the U.S. dollar and the Euro. During the nine months ended March 31, 2025, we
recognized a gain of $165,775 in foreign currency exchange transactions compared to a loss of $1,112,757 for the nine months ended
March 31, 2024. During the nine months ended March 31, 2025, the value of the U