Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 129

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 129
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 approximately $487,000
from a new customer in Indonesia. In the fiscal year ended June 30, 2024, 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, and we recognized approximately $1,142,000
related to the license renewal with an existing customer, and we recognized approximately $465,000 related to the additional sale of
our NFS Ascent® CMS software to a renowned German auto manufacturer based in China, and we recognized approximately $610,000 related
to selling licenses of our digital applications to a current Indonesian customer.

20

Subscription
and Support

Subscription
and support fees for the year ended June 30, 2025, were $32,934,648 compared to $27,952,768 for the year ended June 30, 2024 reflecting
an increase of $4,981,880 with an increase in constant currency of $4,788,597. The increase includes a one-time catch up of approximately
$1,693,000 from five of our customers. Subscription and support fees are recurring in nature, and we anticipate these fees to gradually
increase as we increase our SaaS customer base and implement NFS Ascent®.

Services

Services
income for the year ended June 30, 2025, was $32,554,948 compared to $27,990,332 for the year ended June 30, 2024, reflecting an increase
of $4,564,616 with an increase in constant currency of $4,160,167. The increase is mainly due to implementation services in APAC, the
U.S. and Europe.

Gross
Profit

The
gross profit was $32,574,532 for the year ended June 30, 2025, compared with $29,284,870 for the year ended June 30, 2024. This is an
increase of $3,289,662 with an increase in constant currency of $3,177,383. The gross profit percentage for the year ended June 30, 2025,
increased to 49.3% from 47.7% for the year ended June 30, 2024. The cost of sales was $33,513,697 for the year ended June 30, 2025, compared
to $32,108,221 for the year ended June 30, 202