Company: NEOV
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001683168-25-003355
Chunk: 10

Company: NeoVolta Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 10
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 nine months ended March 31,
2024, which were previously expensed in the year ended June 30, 2023.

Other Matters –
In February 2019, the Company’s Board of Directors approved the establishment of a new 2019 Stock Plan (“Plan”) with
an authorization for the issuance of up to 2,500,000 shares of common stock. In December 2024, the Plan was amended to increase the number
of shares of common stock authorized for issuance by 5,000,000 shares. The Plan is designed to provide for future discretionary grants
of stock options, stock awards and stock unit awards to key employees, consultants, advisors, and non-employee directors. As of March
31, 2025, we have made total awards of 2,450,804 shares under the Plan as follows: (i) 2,256,362 shares for the RSUs granted to our three
executive officers and two non-executive recipients, as noted above; (ii) 153,808 shares for the initial services of our three independent
directors in the years ended June 30, 2024 and 2023, pursuant to the new compensation plan adopted in August 2022 for independent directors;
and (iii) 40,634 shares granted to several wholesale dealers under an incentive sales program.

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(4)       Commitments
and Contingencies 

Effective January 1, 2021,
we secured new corporate and manufacturing office space under a sublease agreement with a company that served as our contract manufacturer
at that time. Under the terms of the sublease agreement, we were required to make rental payments of $10,350 per month during the initial
one-year term of the agreement. Further, under the terms of the sublease agreement, we were granted the right to renew the sublease for
additional terms of 12 months each upon mutual agreement of both parties, provided thirty days’ notice is given for each subsequent
term, at a modest increase in the monthly rent, through December 31, 2024, with no obligation to renew it. At inception of the sublease,
management determined that exercise of the renewal option was not reasonably certain and, notwithstanding that the Company elected to
renew the agreement for additional one year periods as of January 1, 2022, 2023 and 2024. Accordingly, we have accounted for it as a short-term
lease under ASC