Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 252

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 252
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 Note 17 “Segment Information and Geographic Areas” within the Notes to the Consolidated Financial Statements.
Weakening of the value of the U.S. dollar compared to foreign currency exchange 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 Years 
      
    Change in 
    Change due to 
    (Unfavorable)

    Ended June 30, 
      
    Constant 
    Currency 
    Change as

    2025 
    % 
    2024 
    % 
    Currency 
    Fluctuation 
    Reported

    Net Revenues: 
    $66,088,229  
     100.0% 
    $61,393,091  
     100.0% 
    $4,184,791  
    $            510,347  
    $4,695,138 

    Cost of revenues: 
     33,513,697  
     50.7% 
     32,108,221  
     52.3% 
     (1,007,408) 
     (398,068) 
     (1,405,476)

    Gross profit 
     32,574,532  
     49.3% 
     29,284,870  
     47.7% 
     3,177,383  
     112,279  
     3,289,662