Company: NTCL
Filing Date: 2025-02-18
Form Type: 20-F
Source: 0001410578-25-000153
Chunk: 99

Company: NetClass Technology Inc
Filing Date: 2025-02-18
Form: 20-F
Item: Item 5
Chunk 99
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 a violation of laws or force majeure. The agreements usually also prohibit us from assigning the rights and obligations under the agreement without prior written consent of the customer.

Software service and development sales agreements usually state that the services shall be delivered within a certain period of time. Because delivery under these agreements usually happens shortly after signing, the agreements do not necessarily include a termination clause.

Major Suppliers

Our suppliers include software suppliers, equipment suppliers and advertisers, who mainly provide us with application software, project equipment, advertising services, consulting services and other products or services. Even though we have suppliers that each accounts for more than 10% of the total cost, we are not dependent on any suppliers. We maintain good relationships and close liaison with various high quality suppliers to ensure adequate and timely supply of products and services.

Major suppliers that make up 10% or more of purchase for the years ended September 30, 2024, 2023 and 2022 are as follows:

                                                                2024      2023      2022  
  Percentage of the Company’s purchases                                                   
  Movefwd Limited                                               28.6      —         —     
 ──────────────────────────────────────────────────────────────────────────────────────────
  NF Smith and Associates                                       19.1      47.8      —     
  Diaisi Information Technology Co., Ltd                        *         12.4      *     
  Shanghai Thrive Information Tech. Co., Ltd                    *         11.8      14.5  
  Shanghai Xuanping Information Tech. Co., Ltd                  *         *         11.6  
  Shanghai Chunshen Saihua Intelligent Technology Co., Ltd      *         *         10.8  
  Shanghai Keping Information Tech. Co., Ltd                    —         —         39.8  

*The purchase from this supplier is not over 10% of total purchase of the Company.

The contracts with our suppliers are primarily on a fixed-price basis, which require the supplier to provide us with application software, project equipment and application platform maintenance service. The agreements can also be terminated if performance is impossible due to a violation of laws or force majeure. The agreements usually allow us to have a right to inspect the product or equipment provided by suppliers while suppliers have a right to cure the defect. Unexpected technical, operational, logistical, regulatory or other problems, including but not limiting to the defects in the products or equipment provided by our supplier, could delay or prevent the introduction of one or more of new