Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 159

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 159
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 granted to an officer
in March 2022 (see Note 3).

Research and Development
Costs – Research and development costs are expensed as incurred.

Use of Estimates –
Management has made a number of estimates and assumptions in preparing these financial statements in conformity with accounting principles
generally accepted in the United States of America. Actual results could differ from those estimates.

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Segment Information
– Management has determined that the Company operates in one reportable segment, which is the development and commercialization
of energy storage products. The Company's chief operating decision maker (CODM) is its Chief Executive Officer, who reviews financial
information presented on a company-wide basis. The CODM primarily uses net loss, which is reported in the Statements of Operations, to
assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such
as the assessment of segment performance and allocation of resources. The significant categories within net loss that the CODM regularly
reviews 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