Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 108

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 108
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306,799 to the non-controlling
interest. 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 from its own sources.

We
typically fund the cash requirements for our operations in the U.S. through our license, services, and subscription and support
agreements, intercompany 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