Quarterly report pursuant to Section 13 or 15(d)

SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES (Details)

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SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES (Details) - USD ($)
Sep. 30, 2024
Jun. 30, 2024
Debt Instrument [Line Items]    
Total $ 6,436,005 $ 6,270,934
Current Maturities 6,431,048 6,261,250
Long-Term Maturities 4,957 9,684
Subsidiary Finance Leases, Total [1] 100,570 100,962
Subsidiary Finance Leases, Current Maturities [1] 12,889 14,875
Subsidiary Finance Leases, Long-Term Maturities [1] 87,681 86,087
Total 6,536,575 6,371,896
Current Maturities 6,443,937 6,276,125
Long-Term Maturities 92,638 95,771
D&O Insurance [Member]    
Debt Instrument [Line Items]    
Total [2] 23,706 124,314
Current Maturities [2] 23,706 124,314
Long-Term Maturities [2]
Line of Credit [Member]    
Debt Instrument [Line Items]    
Total [3] 250,000
Current Maturities [3] 250,000
Long-Term Maturities [3]
Bank Overdraft Facility [Member]    
Debt Instrument [Line Items]    
Total [4]
Current Maturities [4]
Long-Term Maturities [4]
Loan Payable Bank - Export Refinance [Member]    
Debt Instrument [Line Items]    
Total [5] 1,800,504 1,796,558
Current Maturities [5] 1,800,504 1,796,558
Long-Term Maturities [5]
Loan Payable Bank - Running Finance [Member]    
Debt Instrument [Line Items]    
Total [6]
Current Maturities [6]
Long-Term Maturities [6]
Loan Payable Bank - Export Refinance II [Member]    
Debt Instrument [Line Items]    
Total [7] 1,368,383 1,365,384
Current Maturities [7] 1,368,383 1,365,384
Long-Term Maturities [7]
Loan Payable Bank - Export Refinance III [Member]    
Debt Instrument [Line Items]    
Total [8] 2,520,706 2,515,181
Current Maturities [8] 2,520,706 2,515,181
Long-Term Maturities [8]
Sale and Leaseback Financing [Member]    
Debt Instrument [Line Items]    
Total [9] 44,746 56,842
Current Maturities [9] 39,789 47,158
Long-Term Maturities [9] 4,957 9,684
Short Term Financing [Member]    
Debt Instrument [Line Items]    
Total [10] 427,960 412,655
Current Maturities [10] 427,960 412,655
Long-Term Maturities [10]
[1] The Company leases various fixed assets under finance lease arrangements expiring in various years through 2027. 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, 2024 and 2023.
[2] 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 8.6% to 10.9% as of September 30, 2024 and June 30, 2024.
[3] 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 September 30, 2024 and 8.75% as of June 30, 2024. The total outstanding balance as of September 30, 2024 and June 30, 2024 was $250,000 and $nil, respectively.
[4] 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 $400,000. The annual interest rate was 9.5% as of September 30, 2024 and June 30, 2024. The total outstanding balance as of September 30, 2024 and June 30, 2024 was £Nil.
[5] 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 $1,800,504 at September 30, 2024 and Rs. 500,000,000 or $1,796,558 at June 30, 2024. The interest rate for the loan was 14.5% and 17.5% at September 30, 2024 and June 30, 2024, respectively.
[6] 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 $193,014, at September 30, 2024. The balance outstanding at September 30, 2024 and June 30, 2024 was Rs. Nil. The interest rate for the loan was 18.1% at September 30, 2024 and 22.2% at June 30, 2024.
[7] 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 $1,368,383 and Rs. 380,000,000 or $1,365,384 at September 30, 2024 and June 30, 2024, respectively. The interest rate for the loan was 14.5% and 17.5% at September 30, 2024 and June 30, 2024, respectively.
[8] 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 $3,240,907 and Rs. 900,000,000 or $3,233,804, at September 30, 2024 and June 30, 2024, respectively. NetSol PK used Rs. 700,000,000 or $2,520,706 and Rs. 700,000,000 or $2,515,181, at September 30, 2024 and June 30, 2024, respectively. The interest rate for the loan was 14.5% and 17.5% at September 30, 2024 and June 30, 2024, respectively.
[9] 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, 2024, NetSol PK used Rs. 12,425,952 or $44,746 of which $4,957 was shown as long term and $39,789 as current. As of June 30, 2024, NetSol PK used Rs. 15,819,683 or $56,842 of which $9,684 was shown as long term and $47,158 as current. The interest rate for the loan was from 22.7% to 24.2% at September 30, 2024 and June 30, 2024.
[10] The Company’s subsidiary, NetSol Beijing, has a one-year, short-term loan facility with Bank of China, secured by a personal guarantee from NetSol Beijing’s General Manager. The facility amount is CNY 3,000,000 or $427,960. NetSol Beijing used CNY 3,000,000 or $427,960 at September 30, 2024. NetSol Beijing used CNY 3,000,000 or $412,655, at June 30, 2024. The interest rate of the loan was 3.8% at September 30, 2024 and June 30, 2024.