Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 422

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7
Chunk 422
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ing in four annual installments on each
anniversary.

In February 2022, we entered
into a new employment agreement with our CFO pursuant to which we issued him an RSU award for up to 300,000 shares of our common stock
upon achieving two defined milestones. The first milestone was achieved as of January 1, 2023, and the underlying 250,000 shares of common
stock were issued to our CFO as of that date. The second milestone was achieved as of January 1, 2024, and the underlying 50,000 shares
of common stock are expected to be issued to our CFO at a later date.

In January 2025, we entered
into an employment agreement with our new Chief Operating Officer (“COO”). The initial term of the employment agreement ends
on December 31, 2027 and will be automatically renewable for additional one-year terms unless either party chooses not to renew the agreement.
Pursuant to the agreement, we issued our COO an award of 150,000 RSUs vesting in three annual installments. Additionally, we entered into
employment agreements with two other individuals in June 2024 and October 2024, and we issued them a total of 136,362 RSUs vesting in
four annual installments. As a result, we presently have a total of 1,806,362 RSUs that have been issued to our three officers and two
other individuals. For all of these awards, we have calculated the grant date value of such awards and are amortizing it as stock compensation
expense over the underlying vesting periods. We have recognized stock compensation expense applicable to such RSU awards in the years
ended June 30, 2025 and 2024 in the amounts of $1,011,405 and $214,992, respectively.

In February 2025, we entered
into a referral agreement with a marketing company to market our products to qualified solar and energy storage system installers. The
term of the referral agreement ends on December 31, 2026. Pursuant to the agreement, the only compensation that the marketing company
will be entitled to receive will be through the issuance of shares of our common stock in exchange for reaching specified target levels
of product sales, up to a maximum total of 2,000,000 shares for reaching a total of 2,500 units sold and paid for. In accordance with
ASC 718, we are accounting for this agreement