Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1013

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 5
Chunk 1013
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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) of NTE, not exceeding 90 days
old, will not be less than an amount equal to 200% of the facility. The Pakistani subsidiary, NetSol PK has an approved facility for
export refinance from Askari Bank Limited amounting to Rupees 600 million ($2,111,561) and a running finance facility of Rupees 4.1 million
($14,256). NetSol PK has an approved facility for export refinance from another Habib Metro Bank Limited amounting to Rupees 1.3 billion
($4,575,048). These facilities require NetSol PK to maintain a long-term debt equity ratio of 60:40 and the current ratio of 1:1. NetSol
PK also has an approved export refinance facility of Rs. 380 million ($1,337,322) from Samba Bank Limited. During the loan tenure, these
two facilities require NetSol PK to maintain at a minimum a current ratio of 1:1, an interest coverage ratio of 4 times, a leverage ratio
of 2