Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 63

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 2025.

Travel
expenses were $451,895 for the three months ended March 31, 2025 compared to $799,560 for the three months ended March 31, 2024 for a
decrease of $347,665 with a decrease in constant currency of $346,479. As a percentage of sales, travel expense decreased from 5.2% for
the three months ended March 31, 2024 to 2.6% for the three months ended March 31, 2025.

Depreciation
and amortization expense decreased to $240,444 compared to $250,126 for the three months ended March 31, 2024 or a decrease of $9,682
and on a constant currency basis a decrease of $9,512.

Other
costs increased to $1,337,917 for the three months ended March 31, 2025 compared to $1,136,100 for the three months ended March 31, 2024
or an increase of $201,817 and on a constant currency basis an increase of $202,399.

Operating
Expenses

Operating
expenses were $7,188,375 for the three months ended March 31, 2025 compared to $6,156,917, for the three months ended March 31, 2024
for an increase of $1,031,458 and on a constant currency basis an increase of $1,038,277. As a percentage of sales, it increased from
39.8% to 41.0%. The increase in operating expenses was primarily due to increases in selling and marketing expenses, salaries and wages
and provision for doubtful accounts off set by decrease in other general and administrative expenses.

Selling
expenses were $2,426,083 for the three months ended March 31, 2025 compared to $1,830,025, for the three months ended March 31, 2024
for an increase of $596,058 and on a constant currency basis an increase of $585,484. The increase is mainly due to increases is salaries
and consultants of approximately $427,000, due to annual raises and the hiring of additional marketing personnel. Other marketing expenses
increased by approximately $130,000 due to the increase in advertising and marketing events.

Page 42

General
and administrative expenses were $4,457,504 for the three months ended March 31, 2025