Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 105

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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”) liability
insurance, for which the D&O and E&O balances are renewed on an annual basis and, as such, are recorded in current maturities.
The interest rate on these financings were ranging from 8.6% to 10.9% as of March 31, 2025 and June 30, 2024.

(2)The Company has
an uncommitted discretionary demand line of credit up to an aggregate amount of $1,000,000 with HSBC, secured by a lien on the Company’s
assets. The annual interest rate was 8.25% at March 31, 2025 and 8.75% as of June 30, 2024. The total outstanding balance as of March
31, 2025 and June 30, 2024 was $405,000 and $nil, respectively.

    Page 25

NETSOL
                                            TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

March
31, 2025

(Unaudited)

(3)The Company’s
subsidiary, NTE, has an overdraft facility with HSBC Bank plc whereby the bank would cover any overdrafts up to £300,000, or approximately
$389,610. The annual interest rate was 9.5% as of March 31, 2025 and June 30, 2024. The total outstanding balance as of March 31, 2025
and June 30, 2024 was £Nil.

This overdraft facility
                                                                                                                                                             requires that the aggregate amount of invoiced trade debtors (net of provisions for bad and doubtful debts and excluding intra-group
                                                                                                                                                             debtors) of NTE, not exceeding 90 days old, will not be less than an amount equal to 200% of the facility. As of March 31, 2025, NTE
                                                                                                                                                             was in compliance with this covenant.

(4)The Company’s
subsidiary, NetSol PK, has an export refinance facility with Askari Bank Limited, secured by NetSol PK’s assets. This is a revolving
loan that matures every nine months. The total facility amount is Rs. 600,000,000 or $2,145,846 at March 31, 2025 and Rs. 500,000,000
or $1,796,558 at June 30, 2024. NetSol PK