Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 36

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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4,664,180 and Rs. 900,000,000 or $3,233,804, at December 31, 2024 and June 30, 2024,
respectively. NetSol PK used Rs. 1,300,000,000 or $4,664,180 and Rs. 700,000,000 or $2,515,181, at December 31, 2024 and June 30, 2024,
respectively. The interest rate for the loan was 10.0% and 17.5% at December 31, 2024 and June 30, 2024, respectively.

(8)The Company’s subsidiary, NetSol PK, availed sale and
leaseback financing from First Habib Modaraba secured by the transfer of the vehicles’ title. As of December 31, 2024, NetSol PK
used Rs. 8,804,426 or $31,589 which was shown as current. As of June 30, 2024, NetSol PK used Rs. 15,819,683 or $56,842 of which $9,684
was shown as long term and $47,158 as current. The interest rate for the loan was from 22.7% to 24.2% at December 31, 2024 and June 30,
2024.

(9)The Company’s subsidiary, NetSol Beijing, has a one year,
short-term loan facility with Bank of China, secured by a personal guarantee from NetSol Beijing’s General Manager. The facility
amount is CNY 3,000,000 or $410,959. NetSol Beijing used CNY 3,000,000 or $410,959 at December 31, 2024. NetSol Beijing used CNY 3,000,000
or $412,655, at June 30, 2024. The interest rate of the loan was 3.8% at December 31, 2024 and June 30, 2024.

(10)The Company leases various fixed assets under finance lease
arrangements expiring in various years through 2027. The assets and liabilities under finance leases are recorded at the lower of the
present value of the minimum lease payments or the fair value of the asset. The assets are secured by the assets themselves. Depreciation
of assets under finance leases is included in depreciation expense for the