Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 138

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 138
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 currency of $1,516,550. The gross profit percentage for the nine
months ended March 31, 2025 slightly increased to 46.6% from 46.3% for the nine months ended March 31, 2024. The cost of sales was $25,452,890
for the nine months ended March 31, 2025 compared to $24,132,064 for the nine months ended March 31, 2024 for an increase of $1,320,826
and on a constant currency basis an increase of $938,612. As a percentage of sales, cost of sales slightly decreased from 53.7% for the
nine months ended March 31, 2024 to 53.4% for the nine months ended March 31, 2025.

Salaries
and consultant fees increased by $2,024,684 from $17,665,415 for the nine months ended March 31, 2024 to $19,690,099 for the nine months
ended March 31, 2025 and on a constant currency basis increased by $1,732,630. The increase is due to annual salary raises. As a percentage
of sales, salaries and consultant expense increased from 39.3% for the nine months ended March 31, 2024 to 41.3% for the nine months
ended March 31, 2025.

Travel
expenses were $1,624,008 for the nine months ended March 31, 2025 compared to $2,207,999 for the nine months ended March 31, 2024 for
a decrease of $583,991 with a decrease in constant currency of $606,561. As a percentage of sales, travel expense decreased from 4.9%
for the nine months ended March 31, 2024 to 3.4% for the nine months ended March 31, 2025.

Depreciation
and amortization expense decreased to $706,876 compared to $907,483 for the nine months ended March 31, 2024 or a decrease of $200,607
and on a constant currency basis a decrease of $213,640.

Other
costs increased to $3,431,907 for the nine months ended March 31, 2025 compared to $3,351,167 for the nine months ended March 31, 2024
or an increase of $