Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 882

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 4
Chunk 882
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% for the year ended June 30, 2025.

Salaries
and consultant fees increased by $2,174,558 from $23,622,907 for the year ended June 30, 2024, to $25,797,465 for the year ended June
30, 2025, and on a constant currency basis increased by $1,869,462. The increase is due to annual increases in salary. As a percentage
of sales, salaries and consultant expense increased from 38.5% for the year ended June 30, 2024, to 39.0% for the year ended June 30,
2025.

Travel
decreased by $879,931 from $2,943,442 for the year ended June 30, 2024, to $2,063,511 for the year ended June 30, 2025, and on a constant
currency basis decreased by $901,699. The decrease in travel expense is due to the decrease in travel for the current implementations.
As a percentage of sales, travel expense decreased from 4.8% for year ended June 30, 2024, to 3.1% for the year ended June 30, 2025.

Depreciation
and amortization expense decreased to $952,331 compared to $1,144,809 for the year ended June 30, 2024, or a decrease of $192,478 and
on a constant currency basis a decrease of $202,630.

Other
costs increased to $4,700,390 for the year ended June 30, 2025, compared to $4,397,063 for the year ended June 30, 2024, or an increase
of $303,327 and on a constant currency basis an increase of $242,275. The increase is mainly due to increase in third party hardware
costs of approximately $267,000.

21

Operating
Expenses

Operating
expenses were $29,072,814 for the year ended June 30, 2025, compared to $25,791,315, for the year ended June 30, 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