Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 174

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 174
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 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
from operations was $306,290 for the nine months ended March 31, 2025 compared to $2,695,364 for the nine months ended March 31, 2024.
This represents a decrease of $2,389,074 with a decrease of $1,957,068 on a constant currency basis for the nine months ended March 31,
2025 compared with the nine months ended March 31, 2024. As a percentage of sales, income from operations was 0.6% for the nine months
ended March 31, 2025 compared to 6.0% for the nine months ended March 31, 2024.

Other
Income and Expense

Other
income was $1,272,408 for the nine months ended March 31, 2025 compared to other expense of $687,099 for the nine months ended March
31, 2024. This represents an increase in other income of $1,959,507 with an increase of $1,924,932 on a constant currency basis. The
increase is primarily due to the foreign currency exchange transactions and interest income. The majority