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

Company: NeoVolta Inc.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 common stock and one warrant (each, a “Warrant” and collectively, the “Warrants”) to purchase
one share of common stock at an exercise price of $4.00 per share. The shares of common stock and the Warrants comprising the Units were
immediately separated at closing of the offering and each is now independently listed on the NASDAQ Capital Market. Each Warrant became
exercisable on the date of issuance and will expire five years from the date of issuance.

In the underwritten public
offering, a total of 1,121,250 Units, including exercise of the underwriter’s overallotment option, were sold at an offering price
to the public of $4.00 per Unit. The gross proceeds of the offering were $4,485,000 and the net proceeds, after deduction of underwriting
discounts and other offering costs were approximately $3,780,000. The Company also granted the underwriter non-tradeable warrants to purchase
a total of 58,500 shares of common stock at an exercise price of $4.40 per share for a period of five years.

In conjunction with the public
offering, all holders of the Company’s 2018 convertible notes in the total amount of $59,251, including accrued interest, converted
their debt into a total of 9,404,867 shares of common stock at the stated conversion rate, and all holders of the Company’s 2021
convertible notes in the total amount of $1,120,035, including accrued interest, automatically converted their debt into a total of 267,000
shares of common stock at the stated conversion rate.

Warrants – The
Warrants for a total of 1,179,750 shares of common stock issued to investors and the underwriters are exercisable at any time after their
original issuance and at any time up to the date that is five years after their original issuance, or August 1, 2027. The Warrants may
be exercised upon payment of the exercise price in cash on or prior to the expiration date. Under the terms of the Warrant Agreement,
we must use our best efforts to maintain the effectiveness of the registration statement and current prospectus relating to common stock
issuable upon exercise of the Warrants until the expiration of the Warrants. If we fail to maintain the effectiveness of the registration
statement and current prospectus relating to the common stock issuable upon exercise of the Warrants, the holders of