Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 132

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 132
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 for the three months ended March 31,
2024 for a decrease of $40,794 and on a constant currency basis a decrease of $40,836.

Income/Loss
from Operations

Income
from operations was $1,553,398 for the three months ended March 31, 2025 compared to $1,317,903 for the three months ended March 31,
2024. This represents an increase of $235,495 with an increase of $230,222 on a constant currency basis for the three months ended March
31, 2025 compared with the three months ended March 31, 2024. As a percentage of sales, income from operations was 8.9% for the three
months ended March 31, 2025 compared to 8.5% for the three months ended March 31, 2024.

Other
Income and Expense

Other
income was $432,366 for the three months ended March 31, 2025 compared to other expense of $855,464 for the three months ended March
31, 2024. This represents an increase in other income of $1,287,830 with an increase of $1,286,923 on a constant currency basis. The
increase is primarily due to the foreign currency exchange transactions. 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 three months ended March 31, 2025, we recognized a gain of $321,622 in
foreign currency exchange transactions compared to a loss of $963,887 for the three months ended March 31, 2024. During the three months
ended March 31, 2025, the value of the U.S. dollar increased 0.3% and the Euro increased 4.5%, compared to the PKR. During the three
months ended March 31, 2024, the value of the U.S. dollar and the Euro decreased 0.6% and 2.8%, compared to the PKR.

Non-controlling
Interest

For
the three months ended March 31, 2025, the net income attributable to non-controlling interest was $410,462, compared to net income of
$11,679 for the three months ended March