Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 62

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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2024 reflecting an increase of $748,002 with an increase in constant currency of $768,805. Subscription and support fees begin once a
customer has “gone live” with our product. Subscription and support fees are recurring in nature, and we anticipate these
fees to gradually increase as we implement both our NFS legacy products and NFS Ascent®.

Services

Services
income for the three months ended March 31, 2025 was $9,654,399 compared to $7,765,818 for the three months ended March 31, 2024 reflecting
an increase of $1,888,581, with an increase in constant currency of $1,863,412. The increase is mainly due to implementation services
in the U.S. and Europe.

Gross
Profit

The
gross profit was $8,741,773, for the three months ended March 31, 2025 compared with $7,474,820 for the three months ended March 31,
2024. This is an increase of $1,266,953 with an increase in constant currency of $1,268,499. The gross profit percentage for the three
months ended March 31, 2025 also increased to 49.8% from 48.3% for the three months ended March 31, 2024. The cost of sales was $8,802,184
for the three months ended March 31, 2025 compared to $7,989,696 for the three months ended March 31, 2024 for an increase of $812,488
and on a constant currency basis an increase of $829,393. As a percentage of sales, cost of sales decreased from 51.7% for the three
months ended March 31, 2024 to 50.2% for the three months ended March 31, 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,