Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 66

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 66
---
 recognized approximately $1,142,000 related to the license renewal with an existing customer.

Page 44

Subscription and support

Subscription
and support fees for the six months ended December 31, 2024 were $16,835,100 compared to $13,340,024 for the six months ended December
31, 2023 reflecting an increase of $3,495,076 with an increase in constant currency of $3,371,069. The increase includes a one-time catch
up of approximately $1,693,000 from five 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 six months ended December 31, 2024 was $13,226,142 compared to $11,869,196 for the six months ended December 31, 2023
reflecting an increase of $1,356,946 with an increase in constant currency of $1,139,746. The increase is mainly due to implementation
services in US and Europe.

Gross
Profit

The gross
profit was $13,484,453, for the six months ended December 31, 2024 compared with $13,337,754 for the six months ended December 31, 2023.
This is an increase of $146,699 with an increase in constant currency of $248,051. The gross profit percentage for the six months ended
December 31, 2024 decreased to 44.8% from 45.2% for the six months ended December 31, 2023. The cost of sales was $16,650,706 for the
six months ended December 31, 2024 compared to $16,142,368 for the six months ended December 31, 2023 for an increase of $508,338 and
on a constant currency basis an increase of $109,219. As a percentage of sales, cost of sales increased from 54.8% for the six months
ended December 31, 2023 to 55.3% for the six months ended December 31, 2024.

Salaries
and consultant fees increased by $1,056,666 from $11,861,505 for the six months ended December 31, 2023