Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 477

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7A
Chunk 477
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 are revenues from customers, cost of goods sold, and general and administrative expenses. Other expenses reported in the Company’s
net loss include interest expense and research and development expenses.

Recent Accounting Pronouncements
– From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, (“FASB”),
or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently
issued standards, including ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, and prospective
standards that are not yet effective, including ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense
disaggregation disclosures (Topic 220-40): Disaggregation of Income Statement Expenses, will not have a material impact on the Company’s
financial position or results of operations upon adoption. The Company has considered all other recently issued accounting pronouncements
and does not believe the adoption of such pronouncements will have a material impact on its financial statements.

Liquidity – These
financial statements have been prepared on a going concern basis, which assumes the Company will continue to realize its assets and discharge
its liabilities in the normal course of business. The continuation of the Company as a going concern has been dependent upon our ability
to obtain the necessary debt and equity financing to continue operations and the attainment of profitable operations.

As disclosed in Note 2, we
entered into an agreement with a financing entity in September 2024 whereby we have obtained a line of credit for borrowings of up to
$5,000,000, in order to meet any near-term borrowing needs. As a result, we believe that we will have sufficient financial resources available
to us in order to operate our business for at least the next 12 months from the date these financial statements are issued.

  (2)
  Debt 

On September 3, 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.
Under this agreement, we are obligated to make periodic payments to the lender of accrued interest, at the rate of 16%
per annum, on any outstanding borrowings that we make, with the principal and any unpaid accrued interest being due at maturity,
which was subsequently extended to September
3, 2028 (see Note 6). In order to secure such borrowings, we have granted