Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 94

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 94
---
 months ended December 31, 2024 compared to $341,411, for the three months ended December
31, 2023 for a decrease of $7,742 and on a constant currency basis a decrease of $13,015.

Income/Loss
from Operations

Loss from
operations was $486,950 for the three months ended December 31, 2024 compared to income from operations of $1,026,832 for the three months
ended December 31, 2023. This represents an increase in loss of $1,513,782 with an increase in loss of $1,415,652 on a constant currency
basis for the three months ended December 31, 2024 compared with the three months ended December 31, 2023. As a percentage of sales,
loss from operations was 3.1% for the three months ended December 31, 2024 compared to income from operations of 6.7% for the three months
ended December 31, 2023.

Other
Income and Expense

Other expense
was $367,642 for the three months ended December 31, 2024 compared to other income of $106,036 for the three months ended December 31,
2023. This represents an increase in other expense of $473,678 with an increase of $457,864 on a constant currency basis. The increase
is primarily due to the foreign currency exchange transactions and interest income. The majority of the contracts with NetSol PK are
either in U.S. dollars or Euros; therefore, the currency fluctuations will lead to foreign currency exchange gains or losses depending
on the value of the PKR compared to the U.S. dollar and the Euro. During the three months ended December 31, 2024, we recognized a loss
of $698,392 in foreign currency exchange transactions compared to a loss of $14,617 for the three months ended December 31, 2023. During
the three months ended December 31, 2024, the value of the U.S. dollar increased 0.4% and the Euro decreased 6.6%, compared to the PKR.
During the three months ended December 31, 2023, the value of the U.S. dollar decreased 2.8% and the Euro increased 1.5%, compared to
the PKR.

Non-controlling
Interest

For the
three months ended December 31, 2024,