Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 165

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 165
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, 2025.

Salaries
and consultant fees increased by $968,018 from $5,803,910 for the three months ended March 31, 2024 to $6,771,928 for the three months
ended March 31, 2025 and on a constant currency basis increased by $982,985. The increase is due to annual salary raises. As a percentage
of sales, salaries and consultant expense increased from 37.5% for the three months ended March 31, 2024 to 38.6% for the three months
ended March 31, 2025.

Travel
expenses were $451,895 for the three months ended March 31, 2025 compared to $799,560 for the three months ended March 31, 2024 for a
decrease of $347,665 with a decrease in constant currency of $346,479. As a percentage of sales, travel expense decreased from 5.2% for
the three months ended March 31, 2024 to 2.6% for the three months ended March 31, 2025.

Depreciation
and amortization expense decreased to $240,444 compared to $250,126 for the three months ended March 31, 2024 or a decrease of $9,682
and on a constant currency basis a decrease of $9,512.

Other
costs increased to $1,337,917 for the three months ended March 31, 2025 compared to $1,136,100 for the three months ended March 31, 2024
or an increase of $201,817 and on a constant currency basis an increase of $202,399.

Operating
Expenses

Operating
expenses were $7,188,375 for the three months ended March 31, 2025 compared to $6,156,917, for the three months ended March 31, 2024
for an increase of $1,031,458 and on a constant currency basis an increase of $1,038,277. As a percentage of sales, it increased from
39.8% to 41.0%. The increase in operating expenses was primarily due to increases in selling and marketing expenses, salaries and wages
and provision for doubtful accounts off set by decrease in other general and administrative expenses.

Selling
expenses were $2,426,083 for the three months ended March 31, 2025 compared