Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 49

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 49
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employment agreements with two other individuals in June 2024 and October 2024, and we issued them a total of 136,362 RSUs vesting in
four annual installments. As a result, we presently have a total of 1,806,362 RSUs that have been issued to our three officers and two
other individuals. For all of these awards, we have calculated the grant date value of such awards and are amortizing it as stock compensation
expense over the underlying vesting periods. We have recognized stock compensation expense applicable to such RSU awards in the years
ended June 30, 2025 and 2024 in the amounts of $1,011,405 and $214,992, respectively.

In February 2025, we entered
into a referral agreement with a marketing company to market our products to qualified solar and energy storage system installers. The
term of the referral agreement ends on December 31, 2026. Pursuant to the agreement, the only compensation that the marketing company
will be entitled to receive will be through the issuance of shares of our common stock in exchange for reaching specified target levels
of product sales, up to a maximum total of 2,000,000 shares for reaching a total of 2,500 units sold and paid for. In accordance with
ASC 718, we are accounting for this agreement based on our periodic assessments of the probability of reaching such target levels. Based
on that approach, we have recognized stock compensation expense as of June 30, 2025, in the amount of $165,000.

In conjunction with our public
offering in August 2022, we appointed two new independent directors and adopted a new compensation plan for all independent directors
based on an annual compensation amount of $65,000 to be paid quarterly with not less than 70% of such amount paid in shares of our common
stock, calculated based on the share price at the end of such prior fiscal quarter, and up to 30% paid in cash, with such final amounts
to be determined by each director. As of June 30, 2025 and 2024, we booked an annual accrual of $195,000 of compensation expense (of which
$175,500 will be settled through the issuance of shares) for our three independent directors under this plan.

     37 

In the year ended June
30, 2025, we recognized total non-cash stock compensation expense of $