XML 50 R39.htm IDEA: XBRL DOCUMENT
v3.22.2.2

DEBTS (Tables) | 3 Months Ended
--- | ---
Sep. 30, 2022
Debt Disclosure [Abstract] |
SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES | Notes payable and finance leases consisted of the following: SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES
|  |  |  | As of September 30, 2022 |
|  |  |  |  |  |  | Current |  |  | Long-Term |
Name |  |  |  | Total |  |  | Maturities |  |  | Maturities |
D&O Insurance |  | (1) |  | $ | 34,344 |  |  | $ | 34,344 |  |  | $ | - |
Bank Overdraft Facility |  | (2) |  |  | - |  |  |  | - |  |  |  | - |
Term Finance Facility |  | (3) |  |  | 190,425 |  |  |  | 190,425 |  |  |  | - |
Loan Payable Bank - Export Refinance |  | (4) |  |  | 2,192,694 |  |  |  | 2,192,694 |  |  |  | - |
Loan Payable Bank - Running Finance |  | (5) |  |  | - |  |  |  | - |  |  |  | - |
Loan Payable Bank - Export Refinance II |  | (6) |  |  | 1,666,447 |  |  |  | 1,666,447 |  |  |  | - |
Loan Payable Bank - Export Refinance III |  | (7) |  |  | 3,069,772 |  |  |  | 3,069,772 |  |  |  | - |
Sale and Leaseback Financing |  | (8) |  |  | 407,166 |  |  |  | 144,372 |  |  |  | 262,794 |
Term Finance Facility |  | (9) |  |  | 24,348 |  |  |  | 16,966 |  |  |  | 7,382 |
Insurance Financing |  | (10) |  |  | 79,234 |  |  |  | 79,234 |  |  |  | - |
|  |  |  |  | 7,664,430 |  |  |  | 7,394,254 |  |  |  | 270,176 |
Subsidiary Finance Leases |  | (11) |  |  | 54,998 |  |  |  | 32,718 |  |  |  | 22,280 |
|  |  |  | $ | 7,719,428 |  |  | $ | 7,426,972 |  |  | $ | 292,456 |
|  |  |  | As of June 30, 2022 |
|  |  |  |  |  |  | Current |  |  | Long-Term |
Name |  |  |  | Total |  |  | Maturities |  |  | Maturities |
D&O Insurance |  | (1) |  | $ | 89,552 |  |  | $ | 89,552 |  |  | $ | - |
Bank Overdraft Facility |  | (2) |  |  | - |  |  |  | - |  |  |  | - |
Term Finance Facility |  | (3) |  |  | 423,101 |  |  |  | 423,101 |  |  |  | - |
Loan Payable Bank - Export Refinance |  | (4) |  |  | 2,434,749 |  |  |  | 2,434,749 |  |  |  | - |
Loan Payable Bank - Running Finance |  | (5) |  |  | - |  |  |  | - |  |  |  | - |
Loan Payable Bank - Export Refinance II |  | (6) |  |  | 1,850,409 |  |  |  | 1,850,409 |  |  |  | - |
Loan Payable Bank - Export Refinance III |  | (7) |  |  | 3,408,648 |  |  |  | 3,408,648 |  |  |  | - |
Sale and Leaseback Financing |  | (8) |  |  | 619,108 |  |  |  | 189,226 |  |  |  | 429,882 |
Term Finance Facility |  | (9) |  |  | 31,204 |  |  |  | 18,339 |  |  |  | 12,865 |
Insurance Financing |  | (10) |  |  | 118,026 |  |  |  | 118,026 |  |  |  | - |
|  |  |  |  | 8,974,797 |  |  |  | 8,532,050 |  |  |  | 442,747 |
Subsidiary Finance Leases |  | (11) |  |  | 68,571 |  |  |  | 35,095 |  |  |  | 33,476 |
|  |  |  | $ | 9,043,368 |  |  | $ | 8,567,145 |  |  | $ | 476,223 |
(1) | 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 5.0% to 7.0% as of September 30, 2022 and June 30, 2022.
(2) | 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 $333,333. The annual interest rate was 5.5% as of September 30, 2022. The total outstanding balance as of September 30, 2022 and June 30, 2022 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, 2022, NTE was in compliance with this covenant.
NETSOL TECHNOLOGIES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2022 (Unaudited)
(3) | The Company’s subsidiary, NetSol PK, has a term finance facility from Askari Bank Limited, approved by the Government of Pakistan to protect the employment situation during the COVID-19 pandemic. This is a term loan payable in three years. The availed facility amount was Rs. 43,422,699 or $190,425, at September 30, 2022, which is shown as current. The availed facility amount is Rs. 86,887,974 or $423,101, at June 30, 2022, which is shown as current. The interest rate for the loan was 3% at September 30, 2022 and June 30, 2022.
(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 $2,192,694 at September 30, 2022 and Rs. 500,000,000 or $2,434,749 at June 30, 2022. The interest rate for the loan was 10% and 3% at September 30, 2022 and June 30, 2022, respectively.
(5) | The Company’s subsidiary, NetSol PK, has a running finance facility with Askari Bank Limited, secured by NetSol PK’s assets. The total facility amount is Rs. 53,000,000 or $235,057, at September 30, 2022. The balance outstanding at September 30, 2022 and June 30, 2022 was Rs. Nil. The interest rate for the loan was 17.8% and 14.0% at September 30, 2022 and June 30, 2022, respectively.
| This facility requires NetSol PK to maintain a long-term debt equity ratio of 60:40 and the current ratio of 1:1. As of September 30, 2022, NetSol PK was in compliance with this covenant.
(6) | The Company’s subsidiary, NetSol PK, has an export refinance facility with Samba Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every nine months. The total facility amount is Rs. 380,000,000 or $1,666,447 and Rs. 380,000,000 or $1,850,409 at September 30, 2022 and June 30, 2022, respectively. The interest rate for the loan was 10% and 3% at September 30, 2022 and June 30, 2022, respectively.
| During the tenure of the loan, the facilities from Samba Bank Limited require NetSol PK to maintain at a minimum a current ratio of 1:1, an interest coverage ratio of 4 times, a leverage ratio of 2 times, and a debt service coverage ratio of 4 times. As of September 30, 2022, NetSol PK was in compliance with these covenants.
(7) | The Company’s subsidiary, NetSol PK, has an export refinance facility with Habib Metro Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every nine months. The total facility amount is Rs. 900,000,000 or $3,946,849 and Rs. 900,000,000 or $4,382,548, at September 30, 2022 and June 30, 2022, respectively. NetSol PK used Rs. 700,000,000 or $3,069,772 and Rs. 700,000,000 or $3,408,648, at September 30, 2022 and June 30, 2022, respectively. The interest rate for the loan was 10% and 3% at September 30, 2022 and June 30, 2022, respectively.
(8) | The Company’s subsidiary, NetSol PK, availed sale and leaseback financing from First Habib Modaraba secured by the transfer of the vehicles’ title. As of September 30, 2022, NetSol PK used Rs. 92,846,015 or $407,166 of which $262,794 was shown as long term and $144,372 as current. As of June 30, 2022, NetSol PK used Rs. 127,140,038 or $619,108 of which $429,882 was shown as long term and $189,226 as current. The interest rate for the loan was 9.0% to 16.0% at September 30, 2022, and June 30, 2022.
(9) | In March 2019, the Company’s subsidiary, VLS, entered into a loan agreement. The loan amount was £69,549, or $77,277, for a period of 5 years with monthly payments of £1,349, or $1,499. As of September 30, 2022, the subsidiary has used this facility up to $24,348, of which $7,382 was shown as long-term and $16,966 as current. As of June 30, 2022, the subsidiary has used this facility up to $31,204, of which $12,865 was shown as long-term and $18,339 as current. The interest rate was 6.14% at September 30, 2022 and June 30, 2022.
(10) | The Company’s subsidiary, VLS, finances Directors’ and Officers’ (“D&O”) liability insurance, and the $79,234 and $96,781 was recorded in current maturities, at September 30, 2022 and June 30, 2022, respectively. The interest rate on this financing ranged from 9.7% to 12.7% as of September 30, 2022 and June 30, 2022.
(11) | The Company leases various fixed assets under finance lease arrangements expiring in various years through 2025. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are secured by the assets themselves. Depreciation of assets under finance leases is included in depreciation expense for the three months ended September 30, 2022 and 2021.
SCHEDULE OF AGGREGATE MINIMUM FUTURE LEASE PAYMENTS UNDER CAPITAL LEASES | Following is the aggregate minimum future lease payments under finance leases as of September 30, 2022: SCHEDULE OF AGGREGATE MINIMUM FUTURE LEASE PAYMENTS UNDER CAPITAL LEASES
|  | Amount |
Minimum Lease Payments |  |  |  |
Within year 1 |  | $ | 37,312 |
Within year 2 |  |  | 22,390 |
Within year 3 |  |  | 1,058 |
Total Minimum Lease Payments |  |  | 60,760 |
Interest Expense relating to future periods |  |  | (5,762 | )
Present Value of minimum lease payments |  |  | 54,998 |
Less: Current portion |  |  | (32,718 | )
Current portion of loans and obligations under finance leases |  |  |  |
Non-Current portion |  | $ | 22,280 |
Loans and obligations under finance leases; less current maturities |  |  |  |
SCHEDULE OF AGGREGATE FUTURE LONG TERM DEBT PAYMENTS | Following is the aggregate future long term debt payments as of September 30, 2022 SCHEDULE OF AGGREGATE FUTURE LONG TERM DEBT PAYMENTS
|  | Amount |
Loan Payments |  |  |  |
Within year 1 |  | $ | 351,765 |
Within year 2 |  |  | 164,169 |
Within year 3 |  |  | 106,005 |
Total Loan Payments |  |  | 621,939 |
Less: Current portion |  |  | (351,763 | )
Non-Current portion |  | $ | 270,176 |

X
- Definition Schedule Of Future Minimum Lease Payments For Finance Leases [Table Text Block] + References No definition available. + Details
Name: | NTWK_ScheduleOfFutureMinimumLeasePaymentsForFinanceLeasesTableTextBlock
Namespace Prefix: | NTWK_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDebtTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturity and sinking fund requirement for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 10 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=123465755&loc=d3e1835-112601 + Details
Name: | us-gaap_ScheduleOfMaturitiesOfLongTermDebtTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration