Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 102

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 102
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,290 on a constant currency
basis for the six months ended December 31, 2024 compared with the six months ended December 31, 2023. As a percentage of sales, loss
from operations was 4.1% for the six months ended December 31, 2024 compared to income from operations of 4.7% for the six months ended
December 31, 2023.

Other
Income and Expense

Other income
was $840,042 for the six months ended December 31, 2024 compared to $168,365 for the six months ended December 31, 2023. This represents
an increase of $671,677 with an increase of $638,009 on a constant currency basis. The increase is primarily due to the foreign currency
exchange transactions and interest income. The majority of the contracts with NetSol PK are either in U.S. dollars or Euros; therefore,
the currency fluctuations will lead to foreign currency exchange gains or losses depending on the value of the PKR compared to the U.S.
dollar and the Euro. During the six months ended December 31, 2024, we recognized a loss of $155,847 in foreign currency exchange transactions
compared to $148,870 for the six months ended December 31, 2023. During the six months ended December 31, 2024, the value of the U.S.
dollar increased 0.2% and the Euro decreased 2.9%, compared to the PKR. During the six months ended December 31, 2023, the value of the
U.S. dollar and the Euro decreased 2.6% and 1.2%, respectively, compared to the PKR. During the six months ended December 31, 2024, interest
income was $1,298,939 compared to $882,998 for the six months ended December 31, 2023, for an increase of $415,941 and on constant currency
basis an increase of $374,167. The increase in interest income was driven by a higher balance of interest-bearing funds during the period.

Non-controlling
Interest

For the
six months ended December 31, 2024, the net income attributable to non-controlling interest was $107,750, compared to $834,672 for the
six months ended December 31, 2023. The decrease in non-controlling interest is primarily due to the increase