Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 93

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 93
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,374 for the three months ended December 31, 2023 or a decrease of $26,492
and on a constant currency basis a decrease of $30,214.

Other costs
decreased to $1,062,750 for the three months ended December 31, 2024 compared to $1,146,396 for the three months ended December 31, 2023
or a decrease of $83,646 and on a constant currency basis a decrease of $102,558.

Operating
Expenses

Operating
expenses were $7,407,291 for the three months ended December 31, 2024 compared to $6,148,905, for the three months ended December 31,
2023 for an increase of $1,258,386 and on a constant currency basis an increase of $1,139,949. As a percentage of sales, it increased
from 40.4% to 47.7%. 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 $2,662,397 for the three months ended December 31, 2024 compared to $1,784,510, for the three months ended December 31,
2023 for an increase of $877,887 and on a constant currency basis an increase of $831,571. The increase is mainly due to increases is
salaries and consultants of approximately $586,000, due to annual raises and the hiring of additional marketing personnel. Other marketing
expenses increased by approximately $108,000 due to the increase in marketing events.

Page 41

General
and administrative expenses were $4,411,225 for the three months ended December 31, 2024 compared to $4,022,984 for the three months
ended December 31, 2023 or an increase of $388,241 and on a constant currency basis an increase of $321,393. During the three months
ended December 31, 2024, salaries increased by $123,788 and increased $86,685 on a constant currency basis, bad debt expense increased
$117,355 and increased $114,936 on a constant currency basis, and other general and administrative expenses increased $147,098 or increased
by $119,772 on a constant currency basis.

Research
and development cost was $333,669 for the three