Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 503

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 503
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 tax jurisdictions in which it operates.

Stock Compensation Expense
– Employee and non-employee share-based payment compensation is measured at the grant date, based on the fair value of the award,
and is recognized as an expense over the requisite service period.

Loss Per Common Share
– Basic loss per common share is computed by dividing net loss available to common shareholders by the weighted-average number of
common shares outstanding during the period. Diluted loss per common share is determined using the weighted-average number of common shares
outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, the
weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.
As of June 30, 2025, the Company had total outstanding common stock equivalents of 2,937,512 shares as follows: (i) 1,806,362 shares related
to restricted stock units granted to an officer and another employee in April 2024; (ii) 1,081,150 shares related to warrants issued to
investors in the public offering completed in August 2022; and (iii) 50,000 shares related to restricted stock units granted to an officer
in March 2022 (see Note 3).

Research and Development
Costs – Research and development costs are expensed as incurred.

Use of Estimates –
Management has made a number of estimates and assumptions in preparing these financial statements in conformity with accounting principles
generally accepted in the United States of America. Actual results could differ from those estimates.

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Segment Information
– Management has determined that the Company operates in one reportable segment, which is the development and commercialization
of energy storage products. The Company's chief operating decision maker (CODM) is its Chief Executive Officer, who reviews financial
information presented on a company-wide basis. The CODM primarily uses net loss, which is reported in the Statements of Operations, to
assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such
as the assessment of segment performance and allocation of resources. The significant categories within net loss that the CODM regularly
reviews are revenues from customers, cost of goods sold, and general and administrative expenses. Other expenses reported in the Company’s
net loss include interest expense and research and development expenses.

Recent Accounting Pronouncements
– From time to time, new accounting pronouncements are issued