Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 64

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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 compared to $3,981,310 for the three months ended
March 31, 2024 or an increase of $476,194 and on a constant currency basis an increase of $493,629. During the three months ended March
31, 2025, salaries increased by $14,558 and increased $21,091 on a constant currency basis, bad debt expense increased $606,795 and increased
$616,360 on a constant currency basis, and other general and administrative expenses decreased $145,149 and decreased by $143,822 on
a constant currency basis.

Research
and development cost was $304,788 for the three months ended March 31, 2025 compared to $345,582, for the three months ended March 31,
2024 for a decrease of $40,794 and on a constant currency basis a decrease of $40,836.

Income/Loss
from Operations

Income
from operations was $1,553,398 for the three months ended March 31, 2025 compared to $1,317,903 for the three months ended March 31,
2024. This represents an increase of $235,495 with an increase of $230,222 on a constant currency basis for the three months ended March
31, 2025 compared with the three months ended March 31, 2024. As a percentage of sales, income from operations was 8.9% for the three
months ended March 31, 2025 compared to 8.5% for the three months ended March 31, 2024.

Other
Income and Expense

Other
income was $432,366 for the three months ended March 31, 2025 compared to other expense of $855,464 for the three months ended March
31, 2024. This represents an increase in other income of $1,287,830 with an increase of $1,286,923 on a constant currency basis. The
increase is primarily due to the foreign currency exchange transactions. 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 March 31, 2025, we recognized a gain of $321,622 in
foreign currency exchange transactions compared to a loss of $963,887 for