Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 131

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 131
---
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 compared to $3,981,310 for the three months ended
March 31, 2024 or an increase of $476,194 and on a constant currency basis an increase of $493,629. During the three months ended March
31, 2025, salaries increased by $14,558 and increased $21,091 on a constant currency basis, bad debt expense increased $606,795 and increased
$616,360 on a constant currency basis, and other general and administrative expenses decreased $145,149 and decreased by $143,822 on
a constant currency basis.

Research
and development cost was $304,788 for the three months ended March 31, 2025 compared to $345,582,