Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 45

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 45
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 was $30,767.

On October 4, 2024, we made
an initial borrowing of $250,000 under this line of credit largely in order to fund a short-term loan in the same amount to a new customer
which has a government-backed contract to install a large number of our units in Puerto Rico over a two year period. The purpose of the
loan was to provide working capital to the customer in conjunction with the startup of the contract in Puerto Rico. The loan was structured
to be non-interest bearing, if repaid prior to December 31, 2024. The loan was fully repaid in December 2024.

In the month of November 2024,
we initiated short-term borrowings from a commercial accounts receivable lender under a loan agreement allowing for borrowings, secured
by certain property interests, of up to $4,000,000. As of June 30, 2025, we had made borrowings from this lender to finance customer shipments
and related costs in the total amount of $5,106,343. The lender charges a placement fee of 1% on each borrowing and assesses interest
at the rate of 2.5% per month on the outstanding borrowings. Borrowings are to be repaid upon the earlier of: (i) 120 days from the borrowing
date; or (ii) receipt of payment from the customer. In the event of default, interest is assessed at the default rate of 1% per 7 days.
Through June 30, 2025, we had repaid $2,503,120 of such borrowings, including accrued interest and fees, leaving an outstanding balance
as of that date, including accrued interest and fees, of $2,603,223.

     35 

  (3)
  Equity 

Common Stock –
In February 2025, the Company closed a private equity offering under which the Company issued a total of 543,500 shares of its common
stock to the investors at an offering price of $2.00 per share resulting in gross proceeds to the Company in the amount of $1,087,000.
The Company is using the proceeds of this private offering to meet working capital needs and for other general corporate purposes.

In August 2022, the Company
completed an underwritten public offering of its equity securities in the form of Units with each Unit consisting of one share of common
stock and one warrant (each, a “Warrant