Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 596

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1C
Chunk 596
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30, 2025 and 2024, respectively.

    F-28

NETSOL
TECHNOLOGIES, INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 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
                                                                                                                                                                                          7.75% and 8.75%
                                                                                                                                                                                          as of June 30, 2025 and 2024, respectively. The total outstanding balance as of June 30, 2025 and 2024, was $405,000
                                                                                                                                                                                          and $nil,
                                                                                                                                                                                          respectively.

(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
$410,959. The annual interest rate was 8.5% and 9.5% as of June 30, 2025 and 2024, respectively. The total outstanding balance as of
June 30, 2025 and 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 June 30, 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 six months. The total facility amount is Rs. 600,000,000 or $2,111,561 and Rs. 500,000,000 or $1,796,558 at June
30, 2025 and 2024, respectively. NetSol PK used Rs. 500,000,000 or $1,759,634 at June 30, 2025 and Rs. 500,000,000 or $1,796,558 at June
30, 2024. The interest rate for the loan was