Company: NTWK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010127
Chunk: 182

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 182
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, and a debt service coverage ratio of 4 times.

As
of the date of this report, we are in compliance with the financial covenants associated with our borrowings. The maturity dates of the
borrowings of respective subsidiaries may accelerate if they do not comply with these covenants. In case of any change in control in
subsidiaries, they may have to repay their respective credit facilities.

CRITICAL
ACCOUNTING POLICIES

Our
condensed consolidated financial statements are prepared applying certain critical accounting policies. The SEC defines “critical
accounting policies” as those that require application of management’s most difficult, subjective, or complex judgments.
Critical accounting policies require numerous estimates and strategic or economic assumptions that may prove inaccurate or subject to
variations and may significantly affect our reported results and financial position for the period or in future periods. Changes in underlying
factors, assumptions, or estimates in any of these areas could have a material impact on our future financial condition and results of
operations. Our financial statements are prepared in accordance with U.S. GAAP, and they conform to general practices in our industry.
We apply critical accounting policies consistently from period to period and intend that any change in methodology occur in an appropriate
manner. There have been no significant changes to our accounting policies and estimates as discussed in our Annual Report on Form 10-K
for the fiscal year ended June 30, 2024.

RECENT
ACCOUNTING PRONOUNCEMENTS

For
information with respect to recent accounting pronouncements and the impact of these pronouncements on our consolidated financial statements,
see Note 2 of Notes to Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report.

Item
3. Quantitative and Qualitative Disclosures about Market Risks.

None.

Item
4. Controls and Procedures 

Evaluation
of Disclosure Controls and Procedures 

Our
management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure
controls and procedures pursuant to Rule 13a-15 under the Exchange Act, as of the end of the period covered by this Quarterly Report
on Form 10-Q. Based upon that evaluation, the Chief Financial Officer and Chief Executive Officer concluded that our disclosure controls
and procedures were effective.

Changes
in Internal Control over Financial Reporting 

There
were no changes in our internal controls over financial reporting during the three months ended March 31, 2025, that have materially
affected, or are reasonable likely to materially affect, the Company