Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 170

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 170
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 rates generally has the effect of increasing our revenues but also
increasing our expenses denominated in currencies other than the U.S. dollar. Similarly, strengthening of the U.S. dollar compared to
foreign currency exchange rates generally has the effect of reducing our revenues but also reducing our expenses denominated in currencies
other than the U.S. dollar. We plan our business accordingly by deploying additional resources to areas of expansion, while continuing
to monitor our overall expenditures given the economic uncertainties of our target markets. In order to provide a framework for assessing
how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the changes in results from
one period to another period using constant currency. In order to calculate our constant currency results, we apply the current period
results to the prior period foreign currency exchange rates. In the table below, we present the change based on actual results in reported
currency and in constant currency.

    Favorable  
    Favorable  
    Total 

    (Unfavorable)  
    (Unfavorable)  
    Favorable 

    For the Nine Months  
       
    Change in  
    Change due to  
    (Unfavorable) 

    Ended
    March 31,  
       
    Constant  
    Currency  
    Change as 

    2025  
    %  
    2024  
    %  
    Currency  
    Fluctuation  
    Reported 

    Net Revenues: 
    $47,679,116  
     100.0% 
    $44,944,638  
     100.0% 
    $2,455,162  
    $           279,316  
    $2,734,478 

    Cost of revenues: 
     25,452,890  
     53.4% 
     24,132,064  
     53.7% 
     (938,612) 
     (382,214) 
     (1,320,826)

    Gross profit 
     22,226,226  
     46.6% 
     20,812,574  
     46.3% 
     1,516,550  
     (102,898) 
     1,413,652 

    Operating expenses: 
     21,919