Company: NTWK
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006348
Chunk: 34

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 (“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
8.6% to 10.9% as of December 31, 2024 and June 30, 2024.

(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
8.25% at December 31, 2024 and 8.75% as of June 30, 2024. The total outstanding balance as of December 31, 2024 and June 30, 2024 was
$405,000 and $nil, respectively.

    Page 24

NETSOL
TECHNOLOGIES, INC. 

Notes
to Condensed Consolidated Financial Statements 

December
31, 2024 

(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 $375,000. The annual interest rate
was 9.5% as of December 31, 2024 and June 30, 2024. The total outstanding balance as of December 31, 2024 and June 30, 2024 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 December 31, 2024, 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 nine months. The
total facility amount is Rs. 500,000,000 or $1,793,915 at December 31, 2024 and Rs. 500,000,000 or $1