Company: NEOV
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001683168-25-008147
Chunk: 29

Company: NeoVolta Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 29
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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.

Recent
Accounting Pronouncements – From time to time, new accounting pronouncements are issued by the Financial Accounting
Standards Board, (“FASB”), or other standard setting bodies and adopted by us as of the specified effective date. Unless
otherwise discussed, the impact of recently issued standards, including ASU 2023-07, Segment Reporting (Topic 280): Improvements to
Reportable Segment Disclosures, and prospective standards that are not yet effective, including ASU 2024-03, Income   Statement
– Reporting Comprehensive Income – Expense disaggregation disclosures (Topic 220-40): Disaggregation of Income Statement
Expenses, are not expected to have a significant impact on the Company’s financial statement disclosures upon adoption. The
Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will
have a material impact on its financial statements.

     9 

Liquidity – These
financial statements have been prepared on a going concern basis, which assumes the Company will continue to realize its assets and discharge
its liabilities in the normal course of business. The continuation of the Company as a going concern has been dependent upon the ability
of the Company to obtain necessary debt and equity financing to continue operations and the attainment of profitable operations.

As disclosed in Note 2, we
entered into an agreement with a financing entity in September 2024 whereby we have obtained a line of credit for borrowings of up to
$5,000,000, in order to meet any near-term borrowing needs. As a result, we believe that we will have sufficient financial resources available
to us in order to operate our business for at least the next 12 months from the date these financial statements are issued.

(2)Debt

On September 3, 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. Under
this agreement, we are obligated to make periodic payments to the lender of accrued interest, at the rate of 16% per annum, on any outstanding
borrowings that we make, with the principal and any unpaid accrued interest being due