Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 100

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 100
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3. The cost of sales was $16,650,706 for the
six months ended December 31, 2024 compared to $16,142,368 for the six months ended December 31, 2023 for an increase of $508,338 and
on a constant currency basis an increase of $109,219. As a percentage of sales, cost of sales increased from 54.8% for the six months
ended December 31, 2023 to 55.3% for the six months ended December 31, 2024.

Salaries
and consultant fees increased by $1,056,666 from $11,861,505 for the six months ended December 31, 2023 to $12,918,171 for the six months
ended December 31, 2024 and on a constant currency basis increased by $749,645. The increase is due to annual salary raises. As a percentage
of sales, salaries and consultant expense increased from 40.2% for the six months ended December 31, 2023 to 42.9% for the six months
ended December 31, 2024.

Travel
expenses were $1,172,113 for the six months ended December 31, 2024 compared to $1,408,439 for the six months ended December 31, 2023
for a decrease of $236,326 with a decrease in constant currency of $260,082. As a percentage of sales, travel expense decreased from
4.8% for the six months ended December 31, 2023 to 3.9% for the six months ended December 31, 2024.

Depreciation
and amortization expense decreased to $466,432 compared to $657,357 for the six months ended December 31, 2023 or a decrease of $190,925
and on a constant currency basis a decrease of $204,128.

Other costs
decreased to $2,093,990 for the six months ended December 31, 2024 compared to $2,215,067 for the six months ended December 31, 2023
or a decrease of $121,077 and on a constant currency basis a decrease of $176,216.

Operating
Expenses

Operating
expenses were $14,731,561 for the six months ended December 31, 2024 compared to $11,960,293, for the