Company: NTCL
Filing Date: 2025-02-18
Form Type: 20-F
Source: 0001410578-25-000153
Chunk: 98

Company: NetClass Technology Inc
Filing Date: 2025-02-18
Form: 20-F
Item: Item 5
Chunk 98
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                  *         11.3  

*The revenue of this customer is not over 10% of total revenue of the Company.

Gallop Trading Limited mainly purchases computer storage and computing systems, including equipment as well as the system software and testing and debugging technical services. Pursuant to its purchase order with NetClass HK, NetClass HK shall deliver the products in Grade A within five days after payments by Gallop Trading Limited. NetClass HK provides a 30-day warranty on the products.

Table of Contents

Shanghai Detuo Information Technology Co., Ltd primarily acquires a high-tech park intelligent management system construction and integration and certain SAAS platform services from NetClass China. Shanghai Detuo Information Technology Co., Ltd shall inspect and test the products upon delivery and if products do not meet the standards agreed upon by both parties, NetClass China shall deliver the required products within five days. If such default cannot be cured by re-delivery, NetClass China shall pay liquidated damages in an amount equal to 5% of the purchase price under the agreement. NetClass China shall also provide training and an eighteen-month warranty. Upon expiration of the warranty, NetClass China shall continue to provide maintenance services and may charge service fees. After full payment of the fees by Shanghai Detuo Information Technology Co., Ltd, Shanghai Detuo Information Technology Co., Ltd shall own the software and any intellectual properties thereof. The breaching party shall compensate the non-breaching party for the losses suffered due to the breach of contract, including but not limited to the non-breaching party’s direct and indirect economic losses, investigation and evidence collection fees, litigation fees/arbitration fees, travel expenses, etc. If either party delays the delivery of the products or the payments of the purchase price, the non-defaulting party is entitled to liquidated damages in the amount of 0.05% of the purchase price under the agreement, and if such delay exceeds 15 days, the non-defaulting party has the right to terminate the agreement. The agreements are governed by the laws of the PRC.

The application development service contracts including technical service agreements, software development agreements and equipment sales agreement with major customers contain terms regarding scope of services, effective period, fees and settlement, inspection and quality assurance, termination, and liabilities for breach of contract, etc.

Technical service agreements usually have a term of one to three years. Generally, the agreements will also state that the services shall be delivered within a certain period of time. The agreements can also be terminated if performance is impossible due to