Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 235

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 2
Chunk 235
---
 Expense
– Interest expense for the year ended June 30, 2025 was $320,417 compared to zero for the year ended June 30, 2024, reflecting interest
attributable to borrowings made under our line of credit and another borrowing arrangement obtained since June 30, 2024. Interest income
for the year ended June 30, 2025 was $2,011 compared to $33,644 for the year ended June 30, 2024. This decrease was due to our lower level
of investable cash in the year ended June 30, 2025.

Net Loss - Net loss
for the year ended June 30, 2025 was $5,034,596 compared to $2,303,310 for the year ended June 30, 2024, representing the aggregate of
the various revenue and expense categories indicated above. We have not recognized any income tax benefit for these net losses due to
the uncertainty of our ultimate realization.

Liquidity and Capital Resources

Operating activities.
Net cash used in operating activities for the year ended June 30, 2025 was $4,425,752 compared to $1,016,362 for the year ended June 30,
2024. This increase was largely due to the current period increase in our comparative net loss, primarily resulting from an increase in
our previously noted cash operating expenses for personnel and related costs, as well as the relatively higher changes in our net working
capital needs, including recent stockpiling and prepayment of inventory, on a comparative basis.

Financing activities.
Net cash provided by financing activities for the year ended June 30, 2025 was $4,234,161 compared to zero for the year ended June 30,
2024. In February 2025, we completed a private equity offering under which we issued a total of 543,500 shares of our common stock to
investors at an offering price of $2.00 per share resulting in gross proceeds of $1,087,000. 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 June 30, 2025, we
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