Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 28

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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)The Company finances
Directors’ and Officers’ (“D&O”) liability insurance and Errors and Omissions (“E&O”) liability
insurance, for which the D&O and E&O balances are renewed on an annual basis and, as such, are recorded in current maturities.
The interest rate on these financings were ranging from 8.4% to 11.6% as of September 30, 2025 and June 30, 2025.

(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% as of September 30, 2025 and June 30, 2025. The total outstanding balance as of September
30, 2025 and June 30, 2025 was $505,000 and $405,000, respectively.

    Page 21

NETSOL
TECHNOLOGIES, INC.

Notes
to Condensed Consolidated Financial Statements

September
30, 2025

(Unaudited)

(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
$405,405. The annual interest rate was 8.5% as of September 30, 2025 and June 30, 2025. The total outstanding balance as of September
30, 2025 and June 30, 2025 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 September 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 $2,124,495 at September 30, 2025 and Rs. 600,000