Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 76

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 76
---
 51.6%. The increase in operating expenses was primarily due to increases in selling and marketing expenses, salaries and wages,
offset by a decrease in other general and administrative expenses and the provision for doubtful accounts.

Selling
and marketing expenses were $3,116,953 for the three months ended September 30, 2025 compared to $2,292,199, for the three months ended
September 30, 2024 for an increase of $824,754 and on a constant currency basis an increase of $847,959. The increase is mainly due to
increases in salaries and consultants of approximately $663,739, due to annual raises and the hiring of additional marketing personnel.
Other marketing expenses increased by approximately $151,836 due to the increase in advertising and marketing events.

Page 36

General
and administrative expenses were $4,419,400 for the three months ended September 30, 2025 compared to $4,672,122 for the three months
ended September 30, 2024 or a decrease of $252,722 and on a constant currency basis a decrease of $260,336. During the three months ended
September 30, 2025, salaries increased by $144,888 and increased $144,575 on a constant currency basis, bad debt expense decreased $338,089
and decreased $338,062 on a constant currency basis, and other general and administrative expenses decreased $59,521 and decreased by
$66,849 on a constant currency basis.

Research
and development cost was $214,343 for the three months ended September 30, 2025 compared to $359,949, for the three months ended September
30, 2024 for a decrease of $145,606 and on a constant currency basis a decrease of $141,803.

Income/Loss
from Operations

Loss
from operations was $1,838,706 for the three months ended September 30, 2025 compared to $760,158 for the three months ended September
30, 2024. This represents an increase in loss of $1,078,548 with an increase of $1,115,354 on a constant currency basis for the three
months ended September 30, 2025 compared with the three months ended September 30, 2024. As a percentage of sales, loss from operations
was 12.3% for the three months ended September 30, 2025 compared to a loss