Company: NEOV
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0001683168-25-000834
Chunk: 37

Company: NeoVolta Inc.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 8
Chunk 37
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1 - Successfully complete an uplisting of our common stock in 2022 and continue his employment
with our company until January 1, 2023: 250,000 shares; and (ii) Milestone 2 - successfully complete and file the Company’s Form
10-K for the year ended June 30, 2023 no later than September 29, 2023 and continue his employment with our company until January 1, 2024:
50,000 shares. Milestone 1 was achieved as of January 1, 2023, and the underlying 250,000 shares of common stock earned under Milestone
1 were issued to our CFO as of that date. Milestone 2 was achieved as of January 1, 2024, and the underlying 50,000 shares of common stock
earned under Milestone 2 are expected to be issued to our CFO at a later date (see Note 5).

Based upon our assessment
of the probability of our three executive officers noted above, plus the non-executive recipient of two other RSU award issued in June
2024 and October 2024, ultimately achieving any applicable milestones specified under the RSU awards indicated above, we have calculated
the grant date value of such awards and are amortizing it as stock compensation expense over the underlying performance periods. We have
recognized stock compensation expense applicable to such RSU awards in the six months ended December 31, 2024 and 2023 in the amounts
of $392,339 and $81,683, respectively

In conjunction with our public
offering in August 2022, we appointed two new independent directors and adopted a new compensation plan for all independent directors
based on an annual compensation amount of $65,000 with not less than 70% of such amount paid in shares of our common stock, calculated
based on the share price at the end of such prior fiscal quarter, and up to 30% paid in cash, with such final amounts to be determined
by each director. As of December 31, 2024, we booked an accrual of $97,500 of compensation expense (of which $87,750 will be settled through
the issuance of shares) for our three independent directors under this plan.

In the six months ended December
31, 2024, we recognized total non-cash stock compensation expense of $480,089 as follows: (i) $392,339 for the amortized value of the