Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 517

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1C
Chunk 517
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2025, we had net payments for bank loans and capital leases of $773,535 compared to $517,385 for the year ended
June 30, 2024. During the year ended June 30, 2025, Company employees exercised 220,00 options of common stock for $473,000, NetSol PK,
a subsidiary of the Company, paid a dividend of $306,799 to the non-controlling shareholders, and NetSol PK purchased 2,690,251 shares
of its common stock from the open market for $1,503,662. We are operating in various geographical regions of the world through our various
subsidiaries. Those subsidiaries have financial arrangements from various financial institutions to meet both their short and long-term
funding requirements. These loans will become due at different maturity dates as described in Note 12 of the financial statements. We
are in compliance with the covenants of the financial arrangements and there is no default which may lead to early payment of these obligations.
We anticipate paying back all these obligations on their respective due dates.

We
typically fund the cash requirements for our operations in the U.S. through our license, services, and maintenance agreements, intercompany
charges for corporate services, and through the exercise of options. As of June 30, 2025, we had approximately $17.4 million of cash,
cash equivalents and marketable securities of which approximately $16.4 million is held by our foreign subsidiaries. As of June 30, 2024,
we had approximately $19.1 million of cash, cash equivalents and marketable securities of which approximately $18.2 million was held
by our foreign subsidiaries.

We
remain open to strategic relationships that would provide value added benefits. The focus will remain on continuously improving cash
reserves internally.

As
a growing company, we have on-going capital expenditure needs based on our short-term and long-term business plans. Although our requirements
for capital expenses vary from time to time, for the next 12 months, we anticipate needing working capital of $1.5 to $2 million for
APAC, U.S. and European new business development activities and infrastructure enhancements.

25

Financial
Covenants

Our
UK based subsidiary, NTE, has an approved overdraft facility of £300,000 ($410,959) which requires that the aggregate amount of
invoiced trade debtors (net of provisions for bad and doubtful debts and excluding intra-group debtors