Annual report [Section 13 and 15(d), not S-K Item 405]

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

v3.25.2
SCHEDULE OF COMPONENTS OF NOTES PAYABLE AND CAPITAL LEASES (Details) - USD ($)
Jun. 30, 2025
Jun. 30, 2024
Debt Instrument [Line Items]    
Total $ 8,273,164 $ 6,270,934
Current Maturities 8,226,206 6,261,250
Long-Term Maturities 46,958 9,684
Subsidiary Finance Leases, Total [1] 101,505 100,962
Subsidiary Finance Leases, Current Maturities [1] 13,855 14,875
Subsidiary Finance Leases, Long-Term Maturities [1] 87,650 86,087
Total 8,374,669 6,371,896
Current Maturities 8,240,061 6,276,125
Long-Term Maturities 134,608 95,771
D&O Insurance [Member]    
Debt Instrument [Line Items]    
Total [2] 119,542 124,314
Current Maturities [2] 119,542 124,314
Long-Term Maturities [2]
Line of Credit [Member]    
Debt Instrument [Line Items]    
Total [3] 405,000
Current Maturities [3] 405,000
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] 1,759,634 1,796,558
Current Maturities [5] 1,759,634 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] 1,337,322 1,365,384
Current Maturities [7] 1,337,322 1,365,384
Long-Term Maturities [7]
Loan Payable Bank - Export Refinance III [Member]    
Debt Instrument [Line Items]    
Total [8] 4,575,048 2,515,181
Current Maturities [8] 4,575,048 2,515,181
Long-Term Maturities [8]
Sale and Leaseback Financing [Member]    
Debt Instrument [Line Items]    
Total [9] 76,618 56,842
Current Maturities [9] 29,660 47,158
Long-Term Maturities [9] 46,958 9,684
Short Term Financing [Member]    
Debt Instrument [Line Items]    
Total [10] 412,655
Current Maturities [10] 412,655
Long-Term Maturities [10]
[1] The Company leases various fixed assets under capital lease arrangements expiring in various years through 2028. The assets and liabilities under capital 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 capital leases is included in depreciation expense for the years ended June 30, 2025 and 2024.
[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 rates on these financings range from 8.4% to 11.6% and 8.6% to 10.9% as of June 30, 2025 and 2024, respectively.
[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 7.75% and 8.75% as of June 30, 2025 and 2024, respectively. The total outstanding balance as of June 30, 2025 and 2024, was $405,000 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 $410,959. The annual interest rate was 8.5% and 9.5% as of June 30, 2025 and 2024, respectively. The total outstanding balance as of June 30, 2025 and 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 six months. The total facility amount is Rs. 600,000,000 or $2,111,561 and Rs. 500,000,000 or $1,796,558 at June 30, 2025 and 2024, respectively. NetSol PK used Rs. 500,000,000 or $1,759,634 at June 30, 2025 and Rs. 500,000,000 or $1,796,558 at June 30, 2024. The interest rate for the loan was 8.0% and 17.5% at June 30, 2025 and 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. 4,050,937 or $14,256 and Rs. 53,600,000 or $192,591, at June 30, 2025 and 2024, respectively. The balance outstanding at June 30, 2025 and 2024 was Rs. Nil. The interest rate for the loan was 13.2% and 22.2% at June 30, 2025 and 2024, respectively.
[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 six months. The total facility amount is Rs. 380,000,000 or $1,337,322 and Rs. 380,000,000 or $1,365,384, at June 30, 2025 and 2024, respectively. NetSol PK used Rs. 380,000,000 or $1,337,322 and Rs. 380,000,000 or $1,365,384, at June 30, 2025 and 2024, respectively. The interest rate for the loan was 8.0% and 17.5% at June 30, 2025 and 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. 1,300,000,000 or $4,575,048 and Rs. 900,000,000 or $3,233,804, at June 30, 2025 and 2024, respectively. NetSol PK used Rs. 1,300,000,000 or $4,575,048 and Rs. 700,000,000 or $2,515,181, at June 30, 2025 and 2024, respectively. The interest rate for the loan was 8.0% and 17.5% at June 30, 2025 and 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 June 30, 2025, NetSol PK used Rs. 21,771,042 or $76,618 of which $46,958 was shown as long-term and $29,660 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 ranged between 12.3% and 24.2% at June 30, 2025. The interest rate for the loan ranged between 22.7% and 24.2% at June 30, 2024.
[10] The Company’s subsidiary, NetSol Beijing, has a short-term loan facility with Bank of China, secured by the personal guarantee of the General Manager of NetSol Beijing for a period of one year. The facility amount was CNY 3,000,000 or $418,410. NetSol Beijing paid off this facility during the period ended June 30, 2025. At June 30, 2024, NetSol Beijing used CNY 3,000,000 or $412,655. The interest rate of the loan was 3.8% at June 30, 2025 and 2024, respectively.