Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 99

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 99
---
30,135,159  
     100.0% 
    $29,480,122  
     100.0%

Revenues

License
fees

License
fees for the six months ended December 31, 2024 were $73,917 compared to $4,270,902 for the six months ended December 31, 2023 reflecting
a decrease of $4,196,985 with a decrease in constant currency of $4,199,708. During the six months ended December 31, 2023, we recognized
approximately $2,800,000 related to the sale of our NFS Ascent® CMS software to a renowned US auto manufacturer based in China and
we recognized approximately $1,142,000 related to the license renewal with an existing customer.

Page 44

Subscription and support

Subscription
and support fees for the six months ended December 31, 2024 were $16,835,100 compared to $13,340,024 for the six months ended December
31, 2023 reflecting an increase of $3,495,076 with an increase in constant currency of $3,371,069. The increase includes a one-time catch
up of approximately $1,693,000 from five of our customers. Subscription and support fees begin once a customer has “gone live”
with our product. Subscription and support fees are recurring in nature, and we anticipate these fees to gradually increase as we implement
both our NFS legacy products and NFS Ascent®.

Services

Services
income for the six months ended December 31, 2024 was $13,226,142 compared to $11,869,196 for the six months ended December 31, 2023
reflecting an increase of $1,356,946 with an increase in constant currency of $1,139,746. The increase is mainly due to implementation
services in US and Europe.

Gross
Profit

The gross
profit was $13,484,453, for the six months ended December 31, 2024 compared with $13,337,754 for the six months ended December 31, 2023.
This is an increase of $146,699 with an increase in constant currency of $248,051. The gross profit percentage for the six months ended
December 31, 2024 decreased to 44.8% from 45.2% for the six months ended December 31, 202