Company: NEOV
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001683168-25-008147
Chunk: 37

Company: NeoVolta Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 37
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 be involved in legal proceedings, the outcomes of which may not be determinable. The Company is
not involved in any legal proceedings at this time. The results of litigation are inherently unpredictable. Any claims against us, whether
meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time and result in
diversion of significant resources. We are not able to estimate an aggregate amount or range of reasonably possible losses for those legal
matters for which losses are not probable and estimable.

(5)Subsequent Events

Asset Purchase Agreement
-

On October 15, 2025, we closed
an Asset Purchase Agreement (the “Agreement”) with Neubau Energy Inc. (“Neubau”),
a privately-owned company based in California, and its shareholders, whereby the Company acquired substantially all of Neubau’s
assets consisting mostly of intellectual property and other intangible assets along with a relatively small amount of tangible inventory
and fixed assets. Neubau has developed a proprietary battery storage module but has not had any commercial sales of the product.
With this acquisition, the Company is able to produce and sell Neubau’s proprietary module, which is a complement to the Company’s
products.

The total consideration paid
at closing was approximately $1.5 million consisting of cash in the amount of $500,000 and 200,000 shares of the Company’s common
stock. The Company will also pay Neubau a royalty of $10.00 per unit of Neubau’s proprietary
module sold by the Company for a period of three years following the closing. Additionally,
Neubau has the right to receive up to 4,000,000 additional shares of the Company’s common stock if certain sales milestones related
to Neubau’s proprietary product are met within specified time periods through December 31, 2028. The Company is planning to account
for this transaction as an acquisition of assets and plans to assign the total purchase price paid at closing to the fair value of the
assets acquired.

In conjunction with closing
the asset purchase, we entered into employment agreements with the two principals of Neubau covering a three year period ending September
30, 2028. One of the principals was appointed as the Company’s Chief Operating Officer replacing our former Chief Operating Officer
engaged in January 2025 in that capacity (see Note 3), and our former Chief Operating Officer has now been re-designated as our Chief