Company: NEOV
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001683168-25-007304
Chunk: 303

Company: NeoVolta Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 4
Chunk 303
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 assembling the component parts of the energy storage systems that were
sold in each fiscal year and resulted in essentially comparable gross profits on such sales of approximately 18% and 19% in each year.

 23 

General and Administrative
Expense - General and administrative expenses for the year ended June 30, 2025 were $6,065,590 compared to $2,828,147 for the year
ended June 30, 2024. Such increase was mainly due to our appointment of a new chief executive officer, who was engaged at an annual salary
of $350,000 and also received a 4 year amortizing equity award of $2,854,000, as well as the hiring of several other employees since April
2024. The addition of these personnel has resulted in a higher level of both cash compensation expense and other associated expenses,
such as marketing and travel, as well as non-cash stock compensation expenses related to the Company’s equity incentive programs.

Research and Development
Expense - Research and development expenses for the year ended June 30, 2025 were $157,305 compared to $19,154 for the year ended
June 30, 2024. Such increase was largely due to a higher level of focus by our new chief executive officer on product development efforts.

Other Income and Expense
– Interest expense for the year ended June 30, 2025 was $320,417 compared to zero for the year ended June 30, 2024, reflecting interest
attributable to borrowings made under our line of credit and another borrowing arrangement obtained since June 30, 2024. Interest income
for the year ended June 30, 2025 was $2,011 compared to $33,644 for the year ended June 30, 2024. This decrease was due to our lower level
of investable cash in the year ended June 30, 2025.

Net Loss - Net loss
for the year ended June 30, 2025 was $5,034,596 compared to $2,303,310 for the year ended June 30, 2024, representing the aggregate of
the various revenue and expense categories indicated above. We have not recognized any income tax benefit for these net losses due to
the uncertainty of our ultimate realization.

Liquidity and Capital Resources

Operating activities.
Net cash used in operating activities for the year ended June 30, 2025 was $4,425,752 compared to