Quarterly report pursuant to Section 13 or 15(d)

Debts - Schedule of Components of Notes Payable and Finance Leases (Details)

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Debts - Schedule of Components of Notes Payable and Finance Leases (Details) - USD ($)
Mar. 31, 2020
Jun. 30, 2019
Total $ 8,528,921 $ 6,608,385
Current Maturities 8,475,670 6,541,254
Long-Term Maturities 53,251 67,131
Subsidiary Finance Leases, Total [1] 571,639 861,784
Subsidiary Finance Leases, Current Maturities [1] 319,188 364,343
Subsidiary Finance Leases, Long-Term Maturities [1] 252,451 497,441
Total 9,100,560 7,470,169
Current Maturities 8,794,858 6,905,597
Long-Term Maturities 305,702 564,572
D&O Insurance [Member]    
Total [2] 164,731 67,671
Current Maturities [2] 164,731 67,671
Long-Term Maturities [2]
Bank Overdraft Facility [Member]    
Total [3]
Current Maturities [3]
Long-Term Maturities [3]
Loan Payable Bank - Export Refinance [Member]    
Total [4] 3,005,350 3,066,355
Current Maturities [4] 3,005,350 3,066,355
Long-Term Maturities [4]
Loan Payable Bank - Running Finance [Member]    
Total [5] 325,034
Current Maturities [5] 325,034
Long-Term Maturities [5]
Loan Payable Bank - Export Refinance II [Member]    
Total [6] 2,284,065 2,330,431
Current Maturities [6] 2,284,065 2,330,431
Long-Term Maturities [6]
Loan Payable Bank - Running Finance II [Member]    
Total [7] 735,925
Current Maturities [7] 735,925
Long-Term Maturities [7]
Loan Payable Bank - Export Refinance lll [Member]    
Total [8] 3,005,350
Current Maturities [8] 3,005,350
Long-Term Maturities [8]
Related Party Loan [Member]    
Total [9] 69,425 82,969
Current Maturities [9] 16,174 15,838
Long-Term Maturities [9] $ 53,251 $ 67,131
[1] The Company leases various fixed assets under finance lease arrangements expiring in various years through 2024. 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 March 31, 2020 and 2019.
[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 5.0% to 7.0% as of March 31, 2020 and June 30, 2019.
[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 $370,370. The annual interest rate was 5.12% as of March 31, 2020. Total outstanding balance as of March 31, 2020 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 March 31, 2020, 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. Total facility amount is Rs. 500,000,000 or $3,005,350 at March 31, 2020 and Rs. 500,000,000 or $3,066,355 at June 30, 2019. The interest rate for the loan was 3% at March 31, 2020 and June 30, 2019.
[5] The Company's subsidiary, NetSol PK, has a running finance facility with Askari Bank Limited, secured by NetSol PK's assets. Total facility amount is Rs. 75,000,000 or $450,802, at March 31, 2020. NetSol PK used Rs. Nil, or $Nil at March 31, 2020. The interest rate for the loan was 13.2% and 13.0% at March 31, 2020 and June 30, 2019, 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 March 31, 2020, 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. Total facility amount is Rs. 380,000,000 or $2,284,065 and Rs. 380,000,000 or $2,330,431 at March 31, 2020 and June 30, 2019, respectively. The interest rate for the loan was 3% at March 31, 2020 and June 30, 2019.
[7] The Company's subsidiary, NetSol PK, has a running finance facility with Samba Bank Limited, secured by NetSol PK's assets. Total facility amount is Rs. 120,000,000 or $721,284 and Rs. 120,000,000 or $735,925, at March 31, 2020 and June 30, 2019, respectively. The interest rate for the loan was 12.9% and 14.3% at March 31, 2020 and June 30, 2019, respectively. Total outstanding balance at March 31, 2020 was Rs. Nil. During the tenure of 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 March 31, 2020, NetSol PK was in compliance with these covenants.
[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. Total facility amount is Rs. 900,000,000 or $5,409,629 and NetSol PK used Rs. 500,000,000 or $3,005,350 at March 31, 2020. The interest rate for the loan was 3% at March 31, 2020.
[9] In March 2019, the Company's subsidiary, VLS, entered into a loan agreement. The loan amount was £69,549, or $85,863, for a period of 5 years with monthly payment of £1,349, or $1,666. As of March 31, 2020, the subsidiary has used this facility up to $69,425, of which $53,251 was shown as long-term and $16,174 as current. The interest rate was 6.14% at March 31, 2020.