Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 287

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 3
Chunk 287
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 issued
in conjunction with an underwritten public equity offering, therefore, there was no employee or non-employee compensation expense recognized.
In November 2024, the underwriter elected to exercise all 58,500 Warrants at an exercise price of $4.40 per share, via a cashless exercise,
as permitted under the warrant agreement, resulting in the issuance of 15,312 shares of our common stock. Additionally, the holders of
publicly issued Warrants to purchase an aggregate of 40,100 shares of our common stock elected to exercise their Warrants by a cash payment
of a total of $160,400 resulting in the issuance of the underlying shares of our common stock in December 2024.

Stock Compensation Expense
– In April 2024, we entered into an employment agreement with a new Chief Executive Officer (“CEO”), providing for an
initial term extending through June 30, 2027, which will be automatically renewed for additional one-year terms unless either party chooses
not to renew it. Pursuant to the agreement, our new CEO received an initial equity grant equal to 1,280,000 restricted stock units (“RSUs”),
with a grant date value of $2,854,000, which will vest over a four-year period,
subject to his continued employment with the Company, and will be entitled to earn additional RSUs on each anniversary in the form
of three annual performance-based equity grants. However, our Compensation
Committee has not set any definitive targets, therefore, no additional grants have been made as of June 30, 2025.

In February 2025, we entered
into an amended and restated employment agreement with our Chief Financial Officer (“CFO”). The initial term of the employment
agreement ends on December 31, 2027 and will be automatically renewable for additional one-year terms unless either party chooses not
to renew the agreement. Pursuant to the agreement, we issued our CFO an award of 240,000 RSUs vesting in four annual installments on each
anniversary.

In February 2022, we entered
into a new employment agreement with our CFO pursuant to which we issued him an RSU award for up to 300,000 shares of our common stock
upon achieving two defined milestones. The first milestone was achieved as of January 1, 2023, and the underlying 250,000 shares of common
stock were issued to our CFO as of that date. The second milestone was achieved as