Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 70

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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Services
income for the nine months ended March 31, 2025 was $22,880,541 compared to $19,635,014 for the nine months ended March 31, 2024 reflecting
an increase of $3,245,527 with an increase in constant currency of $3,003,158. The increase is mainly due to implementation services
in the U.S. and Europe.

Gross
Profit

The
gross profit was $22,226,226, for the nine months ended March 31, 2025 compared with $20,812,574 for the nine months ended March 31,
2024. This is an increase of $1,413,652 with an increase in constant currency of $1,516,550. The gross profit percentage for the nine
months ended March 31, 2025 slightly increased to 46.6% from 46.3% for the nine months ended March 31, 2024. The cost of sales was $25,452,890
for the nine months ended March 31, 2025 compared to $24,132,064 for the nine months ended March 31, 2024 for an increase of $1,320,826
and on a constant currency basis an increase of $938,612. As a percentage of sales, cost of sales slightly decreased from 53.7% for the
nine months ended March 31, 2024 to 53.4% for the nine months ended March 31, 2025.

Salaries
and consultant fees increased by $2,024,684 from $17,665,415 for the nine months ended March 31, 2024 to $19,690,099 for the nine months
ended March 31, 2025 and on a constant currency basis increased by $1,732,630. 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