Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 164

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 164
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 ended March 31, 2024 reflecting
a decrease of $557,142 with a decrease in constant currency of $557,142. During the three months ended March 31, 2024, we recognized
approximately $465,000 related to the additional sale of our NFS Ascent® CMS software to a renowned German auto manufacturer based
in China.

Page 41

Subscription
and support

Subscription
and support fees for the three months ended March 31, 2025 were $7,888,360 compared to $7,140,358 for the three months ended March 31,
2024 reflecting an increase of $748,002 with an increase in constant currency of $768,805. 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 three months ended March 31, 2025 was $9,654,399 compared to $7,765,818 for the three months ended March 31, 2024 reflecting
an increase of $1,888,581, with an increase in constant currency of $1,863,412. The increase is mainly due to implementation services
in the U.S. and Europe.

Gross
Profit

The
gross profit was $8,741,773, for the three months ended March 31, 2025 compared with $7,474,820 for the three months ended March 31,
2024. This is an increase of $1,266,953 with an increase in constant currency of $1,268,499. The gross profit percentage for the three
months ended March 31, 2025 also increased to 49.8% from 48.3% for the three months ended March 31, 2024. The cost of sales was $8,802,184
for the three months ended March 31, 2025 compared to $7,989,696 for the three months ended March 31, 2024 for an increase of $812,488
and on a constant currency basis an increase of $829,393. As a percentage of sales, cost of sales decreased from 51.7% for the three
months ended March 31, 2024 to 50.2% for the three months ended March 31