Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 58

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 58
---
11,300,363  
     74.2%
  
    Total 
    $15,536,661  
     100.0% 
    $15,237,941  
     100.0%

Revenues

License
fees

License
fees for the three months ended December 31, 2024 were $72,688 compared to $2,990,453 for the three months ended December 31, 2023 reflecting
a decrease of $2,917,765 with a decrease in constant currency of $2,920,457. During the three months ended December 31, 2023, we recognized
approximately $2,800,000 related to the sale of our NFS Ascent® CMS software to a renowned US auto manufacturer based in China.

Page 40

Subscription and support

Subscription
and support fees for the three months ended December 31, 2024 were $8,642,629 compared to $6,827,781 for the three months ended December
31, 2023 reflecting an increase of $1,814,848 with an increase in constant currency of $1,746,037. The increase includes a one-time catch
up of approximately $1,000,000 from four of our customers. 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 December 31, 2024 was $6,821,344 compared to $5,419,707 for the three months ended December 31, 2023
reflecting an increase of $1,401,637 with an increase in constant currency of $1,286,921. The increase is mainly due to implementation
services in US and Europe.

Gross
Profit

The gross
profit was $6,920,341, for the three months ended December 31, 2024 compared with $7,175,737 for the three months ended December 31,
2023. This is a decrease of $255,396 with a decrease in constant currency of $275,703. The gross profit percentage for the three months
ended December 31, 2024 also decreased to 44.5% from 47.1% for the three months ended December 31, 2023