Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 139

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 139
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80,740 and on a constant currency basis  an increase of $26,183.

Operating
Expenses

Operating
expenses were $21,919,936 for the nine months ended March 31, 2025 compared to $18,117,210, for the nine months ended March 31, 2024
for an increase of $3,802,726 and on a constant currency basis an increase of $3,473,618. As a percentage of sales, it increased from
40.3% to 46.0%. 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 $7,380,679 for the nine months ended March 31, 2025 compared to $5,323,400, for the nine months ended March 31, 2024 for
an increase of $2,057,279 and on a constant currency basis an increase of $1,952,658. The increase is mainly due to increases is salaries
and consultants of approximately $1,447,000, due to annual raises and the hiring of additional marketing personnel. Travel expenses increased
by approximately $274,000. Other marketing expenses increased by approximately $345,000 due to the increase in marketing events.

Page 46

General
and administrative expenses were $13,540,851 for the nine months ended March 31, 2025 compared to $11,728,398 for the nine months ended
March 31, 2024 or an increase of $1,812,453 and on a constant currency basis, an increase of $1,608,601. During the nine months ended
March 31, 2025, salaries increased by approximately $577,390 and increased $493,440 on a constant currency basis, bad debt expense increased
$1,052,776 and $1,046,603 on a constant currency basis, and other general and administrative expenses increased approximately $182,287
or increased by $68,558 on a constant currency basis.

Research
and development cost was $998,406 for the nine months ended March 31, 2025 compared to $1,065,412, for the nine months ended March 31,
2024 for a decrease of $67,006 and on a constant currency basis, a decrease of $87,641.

Income/Loss
from Operations

Income