Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 75

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 75
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 a percentage of sales, cost of sales increased
from 55.0% for the three months ended September 30, 2024 to 60.6% for the three months ended September 30, 2025.

Salaries
and consultant fees increased by $760,792 from $6,203,734 for the three months ended September 30, 2024 to $6,964,526 for the three months
ended September 30, 2025 and on a constant currency basis increased by $789,164. The increase is due to annual salary raises. As a percentage
of sales, salaries and consultant expense increased from 42.5% for the three months ended September 30, 2024 to 46.4% for the three months
ended September 30, 2025.

Travel
expenses were $498,172 for the three months ended September 30, 2025 compared to $570,862 for the three months ended September 30, 2024
for a decrease of $72,690 with a decrease in constant currency of $71,543. As a percentage of sales, travel expense decreased from 3.9%
for the three months ended September 30, 2024 to 3.3% for the three months ended September 30, 2025.

Depreciation
and amortization expense decreased to $208,731 compared to $228,550 for the three months ended September 30, 2024 or a decrease of $19,819
and on a constant currency basis a decrease of $16,277.

Other
costs were $1,428,504 for the three months ended September 30, 2025 compared to $1,031,240 for the three months ended September 30, 2024
or an increase of $397,264 and on a constant currency basis an increase of $456,471. The increase is mainly due to an increase in third-party
hardware and software costs of approximately $380,000 and hosting fees of approximately $57,000.

Operating
Expenses

Operating
expenses were $7,750,696 for the three months ended September 30, 2025 compared to $7,324,270, for the three months ended September 30,
2024 for an increase of $426,426 and on a constant currency basis an increase of $445,820. As a percentage of sales, it increased from
50.2% to