Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 338

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 5
Chunk 338
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 personnel and related costs, as well as the relatively higher changes in our net working
capital needs, including recent stockpiling and prepayment of inventory, on a comparative basis.

Financing activities.
Net cash provided by financing activities for the year ended June 30, 2025 was $4,234,161 compared to zero for the year ended June 30,
2024. In February 2025, we completed a private equity offering under which we issued a total of 543,500 shares of our common stock to
investors at an offering price of $2.00 per share resulting in gross proceeds of $1,087,000. In September 2024, we entered into an agreement
with a newly formed financing entity whereby we obtained a line of credit for borrowings of up to $5,000,000. As of June 30, 2025, we
made net borrowings under this credit agreement in the total amount of $383,538 initially to fund a short-term loan that we made to a
customer in October 2024, in the amount of $250,000, which was fully repaid in December 2024. Beginning in November 2024, we made short-term
borrowings from another lender in the total amount of $5,106,343, of which a portion had been repaid, leaving an outstanding balance as
of June 30, 2025 of $2,603,223. While our increasing level of short-term borrowings from this lender have been made at a relatively high
borrowing cost in terms of interest rate and fees, we have been able to meet our rising funding needs in this period in large part due
to the timely responsiveness of this lender. In December 2024, we also received proceeds from the exercise of warrants issued in our August
2022 public offering in the amount of $160,400.

As of June 30, 2025, we had
a cash balance of approximately $0.8 million and net working capital of approximately $3.2 million. Currently, we are not generating a
break-even level of net operating cash flow from our net sales. However, we anticipate that demand for our products will ultimately increase
over time and that, with our current credit sources, we will have sufficient cash to operate for at least the next 12 months.

 24 

Other Developments

We continue to monitor current
international developments occurring in Ukraine and Israel. However, we do