Company: NEOV
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001683168-25-008147
Chunk: 34

Company: NeoVolta Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 34
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000 shares of common stock were issued to our CFO as of that date. The second milestone was achieved as
of January 1, 2024, and the underlying 50,000 shares of common stock are expected to be issued to our CFO at a later date.

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In January 2025, we entered
into an employment agreement with our former Chief Operating Officer and current Chief Business Officer (“CBO”). 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 CBO an award of 150,000 RSUs vesting in three annual
installments. As a result, we presently have a total of 1,670,000 RSUs that have been issued to our three officers. 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 three months ended September 30, 2025 and
2024 in the amounts of $293,025 and $221,524, respectively (see Note 5).

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.

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 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 September