Company: NEOV
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0001683168-25-000834
Chunk: 21

Company: NeoVolta Inc.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 expenses for the six months ended December 31, 2024 were $2,278,636 compared to $1,329,858 for
the six months ended December 31, 2023. Such increase was mainly due to our engagement of a new chief executive officer, who was engaged
at an annual salary of $350,000 and also received a 4 year amortizing equity award of $2,854,000, as well as the hiring of several other
employees since April 2024. The addition of these personnel resulted in a higher level of both cash compensation expense and other associated
expenses, such as marketing and travel, as well as non-cash stock compensation expenses related to the Company’s equity incentive
programs.

Research and Development
Expense - Research and development expenses for the six months ended December 31, 2024 were $50,941 compared to zero for the six months
ended December 31, 2023. Such fluctuation was largely due to timing differences in the level of the Company’s recent product development
efforts.

Other Income and Expense
- Interest expense for the six months ended December 31, 2024 was $24,546 compared to zero for the six months ended December 31, 2023,
reflecting interest attributable to borrowings made under our line of credit and borrowing arrangements obtained since June 30, 2024.
Interest income for the six months ended December 31, 2024 was $1,734 compared to $18,054 for the six months ended December 31, 2023.
This decrease was due to our lower level of investable cash in the six months ended December 31, 2024.

Net Loss - Net loss
for the six months ended December 31, 2024 was $1,935,631 compared to $984,759 for the six months ended December 31, 2023, representing
the aggregate of the various revenue and expense categories indicated above. The Company has not recognized any income tax benefit for
these net losses due to the uncertainty of its ultimate realization.

 18 

Liquidity and Capital Resources

Operating activities.
Net cash used in operating activities in the six months ended December 31, 2024 was $1,451,330 compared to $503,497 in the six months
ended December 31, 2023. This increase was largely due to the current period increase in our comparative net loss, primarily resulting
from an increase in our