Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 280

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 3
Chunk 280
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ivalents
– The Company considers all highly liquid accounts with original maturities of three months or less at the date of acquisition to
be cash equivalents.  Periodically, the Company may carry cash balances at financial institutions in excess of the federally insured
limit of $250,000. As of June 30, 2025, the Company maintained all of its accounts at one bank and the combined balances of all accounts
at this bank were in excess of the FDIC insurance limit by $544,836.

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 (net of reserve for obsolescence on assembly parts of zero and $90,000, respectively) as of June 30, 2025 and 2024:

     Schedule of inventory 

    June 30, 

    2025  
    2024 

    Raw materials, consisting of assembly parts, batteries and inverters 
    $2,014,252  
    $1,076,479 
  
    Work in process 
     –  
     89,386 
  
    Finished goods 
     123,660  
     621,443 

    Total 
    $2,137,912  
    $1,787,308 

Revenue Recognition
– The Company recognizes revenue in accordance with Accounting Standard 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