Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 373

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 6
Chunk 373
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 for our products or absorbing them internally, or some
combination of those two alternatives. Either circumstance would likely materially adversely affect our sales and/or our profitability.

Off-Balance Sheet Arrangements

We have no obligations, assets
or liabilities which would be considered off-balance sheet arrangements as defined in Item 303 of Regulation S-K.

Critical Accounting Policies

The financial statements have
been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of these financial
statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure
of contingent assets and liabilities at the date of the financial statements, as well as the reported expenses incurred during the reporting
periods. Our estimates are based on our limited historical experience and on various other factors that we believe are reasonable under
the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

We believe that certain accounting
policies, particularly those related to the recognition of revenues arising from the sales of our ESS products to customers of our business,
could potentially affect our judgments and estimates used in the preparation of our financial statements. With regard to revenue recognition,
the Company recognizes revenue in accordance with Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers
(Topic 606), which was adopted on July 1, 2019 using the modified retrospective method, with no impact to the Company’s comparative
financial statements. Revenues are recognized when control of the promised goods is transferred to the customer in an amount that reflects
the consideration the Company expects to be entitled to in exchange for transferring those goods or services. Revenue is recognized based
on the following five step model:

·Identification of the contract with a customer

·Identification of the performance obligations
in the contract

·Determination of the transaction price

·Allocation of the transaction price to the performance
obligations in the contract

·Recognition of revenue when, or as, the Company
satisfies a performance obligation

See “Note 1. Business
and Summary of Significant Accounting Policies” of the notes to our financial statements for the fiscal year ended June 30, 2025,
set forth below under, “Index to Financial Statements”, for a further description of our accounting policies and estimates.
None of those policies are deemed to be critical accounting policies nor