Company: NEOV
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001683168-25-008147
Chunk: 27

Company: NeoVolta Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 27
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000, per bank. At September 30, 2025, the Company maintained all of its accounts at one bank and the combined balances of
all accounts at this bank was in excess of the FDIC insurance limit by $639,819.

Inventory
– Inventory consists of batteries and inverters purchased from Asian suppliers and delivered to a location near the Company’s
offices, for assembly into ESS units. Inventory is stated at the lower of cost or net realizable value, cost being determined using the
first-in, first out (FIFO) method. The Company periodically reviews the value of items in inventory and records an allowance to reduce
the carrying value of inventory to the lower of cost or net realizable value based on its assessment of market conditions, inventory
turnover and current stock levels. Inventory write-downs are charged to cost of goods sold. The following table presents the components
of inventory as of September 30, 2025 and June 30, 2025:

    Schedule of inventory 

    September 30,  
    June 30, 

    2025  
    2025 
  
    Raw materials, consisting of assembly parts, batteries and inverters 
    $1,339,624  
    $2,014,252 
  
    Work in process 
     – 
     –
  
    Finished goods 
     139,156  
     123,660 

    Total 
    $1,478,780  
    $2,137,912 

     8 

Revenue Recognition
– The Company recognizes revenue in accordance with Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts
with Customers (Topic 606). Revenues are recognized when control of the promised goods is transferred to the customer in an amount that
reflects the consideration the Company expects to be entitled to in exchange for transferring those goods or services. Revenue is recognized
based on the following five step model:

·Identification of the contract with a customer

·Identification of the performance obligations in the contract

·Determination of the transaction price

·Allocation of the transaction price to the performance obligations in the contract

·Recognition of revenue when, or as, the Company satisfies a performance obligation

The Company generates revenues
from contracts with customers, consisting of a relatively small number of wholesale dealers and installers, in California and several
other states. Four such dealers represented approximately 35%, 18%,