Company: NTWK
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021835
Chunk: 59

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 59
---
 months ended September 30, 2024. Employees of our subsidiary,
NetSol PK, exercised 278,455 options of common stock for $76,567, of which $64,147 was received during the quarter ended September 30,
2025 and $12,420 was received during the fiscal year ended June 30, 2025. We are operating in various geographical regions of the world
through our various subsidiaries. Those subsidiaries have financial arrangements with 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 September 30, 2025, we had approximately
$22.7 million of cash, cash equivalents and marketable securities of which approximately $22 million is held by our foreign subsidiaries.
As of June 30, 2025, we had approximately $17.4 million of cash, cash equivalents and marketable securities of which approximately $16.4
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 reducing reliance on external capital raises.

As
a growing company, we have ongoing 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 $1.5 million for APAC, the U.S. and Europe’s
new business development activities and infrastructure enhancements, which we expect to provide from current operations.

Page 40

Financial
Covenants

Our
UK based subsidiary, NTE, has an approved overdraft facility of £300,000 ($405,405) 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