Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 75

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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company charges for corporate services, and through the exercise of options and warrants. As of December 31, 2024,
we had approximately $21.3 million of cash, cash equivalents and marketable securities of which approximately $20 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 is 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 and reduced reliance on external capital raise.

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 $2.5 million for APAC, U.S. and Europe new business
development activities and infrastructure enhancements, which we expect to provide from current operations.

Page 49

Financial
Covenants

Our UK
based subsidiary, NTE, has an approved overdraft facility of £300,000 ($375,000) 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 500 million ($1,793,915) and a running finance facility of Rupees 3.6 million ($12,740).
NetSol PK has an approved facility for export refinance from another Habib Metro Bank Limited amounting to Rupees 1.3 billion ($4,664,180).
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 ($1,363,375) 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 times,
and a debt service coverage ratio of 4 times.

As of the