Quarterly report pursuant to Section 13 or 15(d)

Debts - Components of Notes Payable and Capital Leases (Details)

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Debts - Components of Notes Payable and Capital Leases (Details) - USD ($)
Dec. 31, 2017
Jun. 30, 2017
Dec. 31, 2016
Total $ 9,826,467 $ 9,861,787  
Current Maturities 9,826,467 9,861,787  
Long-Term Maturities  
Subsidiary Capital Leases, Total [1] 557,516 727,770  
Subsidiary Capital Leases, Current Maturities [1] 306,633 361,008  
Subsidiary Capital Leases, Long-Term Maturities [1] 250,883 366,762  
Total 10,383,983 10,589,557  
Current Maturities 10,133,100 10,222,795 $ 4,368,930
Long-Term Maturities 250,883 366,762 501,554
D&O Insurance [Member]      
Total [2] 105,023 87,485  
Current Maturities [2] 105,023 87,485  
Long-Term Maturities [2]  
Bank Overdraft Facility [Member]      
Total [3] 221,379  
Current Maturities [3] 221,379  
Long-Term Maturities [3]  
Loan Payable Bank - Export Refinance [Member]      
Total [4] 4,521,613 4,776,461  
Current Maturities [4] 4,521,613 4,776,461  
Long-Term Maturities [4]  
Loan Payable Bank - Running Finance [Member]      
Total [5] 678,217    
Current Maturities [5] 678,217    
Long-Term Maturities [5]    
Loan Payable Bank - Export Refinance II [Member]      
Total [6] 3,165,130 1,910,585  
Current Maturities [6] 3,165,130 1,910,585  
Long-Term Maturities [6]  
Loan Payable Bank - Running Finance II [Member]      
Total [7] 1,356,484   2,865,877
Current Maturities [7] 1,356,484   2,865,877
Long-Term Maturities [7]  
[1] The Company leases various fixed assets under capital lease arrangements expiring in various years through 2022. 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 three months ended December 31, 2017 and 2016.
[2] The Company finances Directors’ and Officers’ (“D&O”) liability insurance, Errors and Omissions (“E&O”) liability insurance and some account payables, 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 4.8% to 7.69% as of December 31, 2017 and June 30, 2017.
[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 $405,405. The annual interest rate was 4.75% as of December 31, 2017. Total outstanding balance as of December 31, 2017 was £Nil. Interest expense for three and six months ended December 31, 2017, was $5,991 and $8,045, respectively. Interest expense for three and six months ended December 31, 2016, was $nil.
[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 six months. Total facility amount is Rs. 500,000,000 or $4,521,613 at December 31, 2017 and June 30, 2017. The interest rate for the loans was 3% at December 31, 2017 and June 30, 2017. Interest expense for the three and six months ended December 31, 2017 was $35,533 and $71,431, respectively. Interest expense for the three and six months ended December 31, 2016 was $28,527 and $57,592, respectively.
[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 $678,242, at December 31, 2017. NetSol PK used Rs. 74,997,233 or $678,217, at December 31, 2017. The interest rate for the loans was 8.16% at December 31, 2017.
[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 six months. Total facility amount is Rs. 350,000,000 or $3,165,130 and Rs. 200,000,000 or $1,910,585, at December 31, 2017 and June 30, 2017, respectively. The interest rate for the loans was 3% at December 31, 2017 and June 30, 2017. Interest expense for the three and six months ended December 31, 2017 was $17,656 and $39,778, respectively. Interest expense for three and six months ended December 31, 2016, was $nil, respectively.
[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. 150,000,000 or $1,356,484 and Rs. 300,000,000 or $2,865,877, at December 31, 2017 and June 30, 2017. The interest rate for the loans was 8.13% at December 31, 2017 and June 30, 2017, respectively. Interest expense for the three and six months ended December 31, 2017 was $35,626 and $79,721, respectively. Interest expense for three and six months ended December 31, 2016, was $nil.