Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 306

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 4
Chunk 306
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 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 critical accounting estimates. As reflected in Note 1, Management
has determined that the Company operates in only one reportable segment, which is the development and commercialization of energy
storage products.

 25 

Emerging Growth Company and Smaller Reporting
Company Status

We are an emerging growth
company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards
issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We elected to use this
extended transition period for complying with new or revised accounting standards that have different effective dates for public and private
companies until the earlier of the date that we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt
out of the extended transition period provided in the JOBS Act. As a result, these