Company: NEOV
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0001683168-25-000834
Chunk: 22

Company: NeoVolta Inc.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 previously noted cash operating expenses, as well as relatively higher changes in our net working capital needs
on a comparative basis.

Financing activities.
Net cash provided by financing activities in the six months ended December 31, 2024 was $793,649, compared to zero in the six months ended
December 31, 2023. In September 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. As of December 31, 2024, we had made net borrowings under this credit agreement in the total
amount of $383,538 initially to fund a short-term loan that we made to a customer in October 2024, in the amount of $250,000, which was
fully repaid in December 2024. In November and December 2024, we made short-term borrowings from an accounts receivable lender in the
total amount of $371,997, of which a portion had been repaid, leaving an outstanding balance as of December 31, 2024 of $249,711. In December
2024, we also received proceeds from the exercise of warrants issued in our August 2022 public offering in the amount of $160,400.

On February 4, 2025, the Company
entered into an agreement with an accredited investor group under which the Company issued a total of 500,000 shares of its common stock
to the investor group at an offering price of $2.00 per share resulting in gross proceeds to the Company in the amount of $1,000,000.

As of December 31, 2024, we
had a cash balance of approximately $0.3 million and net working capital of approximately $3.7 million. Currently, we are not generating
a break-even level of net operating cash flow from our net sales. However, we anticipate that demand for our products will ultimately
increase over time and that, in conjunction with our recently obtained line of credit noted above and the completion of the February 2025
private offering, we will have sufficient cash to operate for at least the next 12 months.

Other Developments

We continue to monitor current
international developments occurring in Ukraine and Israel. However, we do not believe that they will have a significant impact on either
the domestic markets for our products or the international supply chains for our product components, which are largely sourced from Asia.