Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 458

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7
Chunk 458
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    Income tax benefit computed at statutory rate 
    $747,900  
    $279,400 
  
    Change in valuation allowance 
     (747,900) 
     (279,400)
  
    Provision for income taxes 
    $–  
    $– 

Significant components of
the Company’s deferred tax assets at the currently enacted corporate income tax rate are as follows (rounded to nearest $00):

    Schedule of deferred taxes 

    June 30, 2025  
    June 30, 2024 
  
    Deferred income tax assets: 

    Net operating losses 
    $1,570,100  
    $824,300 
  
    Valuation allowance 
     (1,570,000) 
     (824,300)
  
    Net deferred income tax assets 
    $–  
    $– 

The Company has a cumulative
tax operating loss carry forward as of June 30, 2025 of approximately $7,477,000, with an indefinite expiration period.

     38 

(5)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. However, we were under 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 842, Leases. Effective December 31, 2024, the parties mutually agreed to a short-term extension
of the sublease agreement, on essentially the same terms, through February 28, 2025. Prior to expiration of the extended sublease,