Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 92

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 92
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 an increase of $1,401,637 with an increase in constant currency of $1,286,921. The increase is mainly due to implementation
services in US and Europe.

Gross
Profit

The gross
profit was $6,920,341, for the three months ended December 31, 2024 compared with $7,175,737 for the three months ended December 31,
2023. This is a decrease of $255,396 with a decrease in constant currency of $275,703. The gross profit percentage for the three months
ended December 31, 2024 also decreased to 44.5% from 47.1% for the three months ended December 31, 2023. The cost of sales was $8,616,320
for the three months ended December 31, 2024 compared to $8,062,204 for the three months ended December 31, 2023 for an increase of $554,116
and on a constant currency basis an increase of $412,633. As a percentage of sales, cost of sales increased from 52.9% for the three
months ended December 31, 2023 to 55.5% for the three months ended December 31, 2024.

Salaries
and consultant fees increased by $811,075 from $5,903,362 for the three months ended December 31, 2023 to $6,714,437 for the three months
ended December 31, 2024 and on a constant currency basis increased by $701,239. The increase is due to annual salary raises. As a percentage
of sales, salaries and consultant expense increased from 38.7% for the three months ended December 31, 2023 to 43.2% for the three months
ended December 31, 2024.

Travel
expenses were $601,251 for the three months ended December 31, 2024 compared to $748,072 for the three months ended December 31, 2023
for a decrease of $146,821 with a decrease in constant currency of $155,834. As a percentage of sales, travel expense decreased from
4.9% for the three months ended December 31, 2023 to 3.9% for the three months ended December 31, 2024.

Depreciation
and amortization expense decreased to $237,882 compared to $264