Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 101

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 101
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 six months ended December 31, 2023
for an increase of $2,771,268 and on a constant currency basis an increase of $2,435,341. As a percentage of sales, it increased from
40.6% to 48.9%. The increase in operating expenses was primarily due to increases in selling and marketing expenses, salaries and wages,
provision for doubtful accounts, and other general and administrative expenses.

Selling
expenses were $4,954,596 for the six months ended December 31, 2024 compared to $3,493,375, for the six months ended December 31, 2023
for an increase of $1,461,221 and on a constant currency basis an increase of $1,367,174. The increase is mainly due to increases is
salaries and consultants of approximately $1,021,000, due to annual raises and the hiring of additional marketing personnel. Other marketing
expenses increased by approximately $443,000 due to the increase in marketing events.

Page 45

General
and administrative expenses were $9,083,347 for the six months ended December 31, 2024 compared to $7,747,088 for the six months ended
December 31, 2023 or an increase of $1,336,259 and on a constant currency basis an increase of $1,114,972. During the six months ended
December 31, 2024, salaries increased by approximately $562,832 and increased $472,349 on a constant currency basis, bad debt expense
increased $445,981 and $430,243 on a constant currency basis, and other general and administrative expenses increased approximately $327,446
or increased by $212,380 on a constant currency basis.

Research
and development cost was $693,618 for the six months ended December 31, 2024 compared to $719,830, for the six months ended December
31, 2023 for a decrease of $26,212 and on a constant currency basis a decrease of $46,805.

Income/Loss
from Operations

Loss from
operations was $1,247,108 for the six months ended December 31, 2024 compared to income from operations of $1,377,461 for the six months
ended December 31, 2023. This represents an increase in loss of $2,624,569 with an increase in loss of $2,187