Company: NEOV
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001683168-25-003355
Chunk: 14

Company: NeoVolta Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 14
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 sales of our products in that state, beginning in December 2022.

Results of Operations

The following discussion
reflects the Company’s revenues and expenses for the three-month and nine-month periods ended March 31, 2025 and 2024, as reported
in our financial statements included in Item 1.

Three months ended March 31, 2025 versus three
months ended March 31, 2024

Revenues - Revenues
from contracts with customers for the three months ended March 31, 2025 were $2,014,105 compared to $283,900 for the three months ended
March 31, 2024. Such increase in our revenues, to the highest quarterly level in the history of our Company, was primarily due to the
impact of opening various new sales channels since the engagement of our new chief executive officer in April 2024.

Cost of Goods Sold
- Cost of goods sold for the three months ended March 31, 2025 were $1,499,597 compared to $117,755 for the three months ended March 31,
2024. The cost of goods sold in both periods reflected the cost of procuring and assembling the component parts of the energy storage
systems that were sold in each fiscal year and resulted in gross profits on such sales of approximately 26% and 58%, respectively, with
the unusually high percentage in the prior year being due to the initial efficiencies that we realized from taking over responsibility
for manufacturing of our products from a prior contract operator.

General and Administrative
Expense - General and administrative expenses for the three months ended March 31, 2025 were $1,857,531 compared to $756,118 for the
three months ended March 31, 2024. Such increase was mainly due to our engagement of a new chief executive officer, who was engaged at
an annual salary of $350,000 and also received a 4 year amortizing equity award of $2,854,000, as well as the hiring of several other
employees since April 2024. The addition of these personnel has resulted in a higher level of both cash compensation expense and other
associated expenses, such as marketing and travel, as well as non-cash stock compensation expenses related to the Company’s equity
incentive programs.

Research and Development
Expense - Research and development expenses for the three months ended March 31, 2025 were $27,947 compared to $10,392 for the