Company: NEOV
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001683168-25-008147
Chunk: 51

Company: NeoVolta Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 51
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589,052, compared to zero in the three months
ended September 30, 2024. Beginning in November 2024, we have made short-term borrowings from two private lenders, primarily to finance
inventory purchases. In the three months ended September 30, 2025 we made borrowings from these lenders in the amount of $4,199,549 and
repayments in the amount of $2,660,497. Additionally, we received a cash deposit from an investor for an advance subscription under our
planned new private equity offering.

As of September 30, 2025,
we had a cash balance of approximately $0.9 million and net working capital of approximately $2.7 million. Currently, we are not generating
a break-even level of net operating cash flow from our net sales. However, we anticipate that demand for our products will ultimately
increase over time and that, with our current credit sources, we will have sufficient cash to operate for at least the next 12 months.

Other Developments

We continue to monitor current
international developments occurring in Ukraine and Israel. However, we do not believe that they will have a significant impact on either
the domestic markets for our products or the international supply chains for our product components, which are largely sourced from Asia.

 15 

Presently, our two main raw
material components, batteries and inverters, are imported from different suppliers in China and, until recently, were subject to fairly
low tariff rates that had been in effect for several years. Beginning in April 2025, the Trump Administration implemented a significant
increase in tariff rates on all goods imported from China, although it was temporarily suspended for 90 days in April 2025 and the suspension
has been extended to November 2025, subject to judicial review. Prior to the tariff escalation in April 2025, we had anticipated the likelihood
of facing such a tariff increase and began stockpiling our inventory of these two components. As a result, we do not anticipate having
to purchase a significant level of such components at post-tariff prices for the next several months.

In the event, however, that
such a mutual trade agreement is not reached between the parties within the next several months and we find it necessary to begin purchasing
a significant level of our inventory components from China at post-tariff prices, we would be faced with a decision as to whether we should
attempt to pass along such tariff increases to our customers through